Document:

<PAGE>   1
                              TELEDESIC CORPORATION
                             STOCK OPTION AGREEMENT

TO: [NAME FIELD] ("OPTIONEE")

                                    RECITALS

        A. The Board of Directors of Teledesic Corporation (the "Corporation")
has adopted the [Restated 1994 Stock Option/Stock Issuance Plan] [1996 Restated
California Stock Option/Stock Issuance Plan] (the "Plan") for the purpose of
attracting and retaining the services of selected Employees (including officers
and directors), nonemployee members of the Board and consultants and other
independent contractors who provide valuable services to the Corporation or any
Parent or Subsidiary.

        B. Optionee is an individual who is to render valuable services to the
Corporation or any Parent or Subsidiary, and this Stock Option Agreement (this
"Agreement") is executed pursuant to, and is intended to carry out the purposes
of, the Plan in connection with the Corporation's granting a stock option to
Optionee.

        C. All capitalized terms in this Agreement shall have the meaning
assigned to them in this Agreement, the attached Appendix or the Plan.

        NOW, THEREFORE, it is hereby agreed as follows:

1.      GRANT OF OPTION

        Subject to and upon the terms and conditions set forth in this Agreement
and the Plan, the Corporation hereby grants to Optionee, as of the Grant Date
set forth below, the following stock option (the "Option") to purchase up to the
number of Option Shares specified below:

            GRANT DATE:                           ________, 1999
            NUMBER OF SHARES:
                                                  ______________
            EXERCISE PRICE:                       $_____________
            VESTING COMMENCEMENT DATE:            ________, 1999
            EXPIRATION DATE:                      ________, 2009
            STATE/COUNTRY OF RESIDENCE:
                                                  ______________
            [TYPE OF OPTION:                      INCENTIVE STOCK OPTION ("ISO")

        The Option is intended to qualify as an ISO under federal income tax
law, but the Corporation does not represent or guarantee that the Option
qualifies as such. As described more fully in Section 19 hereof, should any
portion of the Option exceed ISO limitations, then such excess portion shall be
treated as a Nonstatutory Stock Option.]

        [TYPE OF OPTION: Nonstatutory Stock Option]

        VESTING SCHEDULE: The Option shall vest and become exercisable [FOR
INITIAL GRANTS: over a period of four years from the Vesting Commencement
Date] [FOR SUBSEQUENT GRANTS: in

<PAGE>   2

eight semi-annual installments over a period of four years from the Vesting
Commencement Date] in accordance with the following schedule:

<TABLE>
<S>                                              <C>
          PERIOD OF CONTINUOUS SERVICE           PORTION OF TOTAL OPTION
               FROM THE VESTING                    WHICH IS VESTED AND
              COMMENCEMENT DATE                        EXERCISABLE

                  [One year                                    25%]
                  [Six months                                12.5%]
             Each six-month period of               An additional 12.5%
           continuous service completed
                   thereafter

                   Four Years                               100%
</TABLE>

        Notwithstanding the foregoing, the Option shall become fully vested and
shall remain exercisable for the remaining term of the Option upon a Change in
Control, as such term is defined in the Plan on the date hereof or as such
definition may hereafter be amended, provided that any such amendment shall not
adversely affect any rights of the Optionee under the Plan prior to such
amendment. The Option Shares shall be purchasable from time to time during the
option term at the Exercise Price.

        OPTIONEE UNDERSTANDS AND AGREES THAT THE OPTION IS GRANTED SUBJECT TO
AND IN ACCORDANCE WITH THE EXPRESS TERMS AND CONDITIONS OF THE PLAN AND OPTIONEE
HEREBY ACKNOWLEDGES RECEIPT OF A COPY OF THE PLAN. Optionee further agrees to be
bound by the terms and conditions of the Plan and the terms and conditions of
the Option as set forth in this Agreement.

2.      MARKET STANDOFF AND RIGHTS OF FIRST OFFER

        OPTIONEE HEREBY AGREES THAT ALL OPTION SHARES ACQUIRED UPON THE EXERCISE
OF THE OPTION SHALL BE SUBJECT TO CERTAIN MARKET STANDOFF PROVISIONS AND RIGHTS
OF FIRST OFFER EXERCISABLE BY THE CORPORATION AND ITS ASSIGNS TO REPURCHASE THE
OPTION SHARES UPON ANY PROPOSED SALE, ASSIGNMENT, TRANSFER, ENCUMBRANCE OR OTHER
DISPOSITION OF SUCH SHARES. THE TERMS AND CONDITIONS OF SUCH PROVISIONS AND
RIGHTS WILL BE SPECIFIED IN THE STOCK PURCHASE AGREEMENT IN USE AT THE TIME OF
EXERCISE OF THE OPTION. A COPY THE STOCK PURCHASE AGREEMENT CURRENTLY IN USE IS
AVAILABLE BY REQUEST.

3.      OPTION TERM

        The Option shall have a maximum term of ten (10) years measured from the
Grant Date and shall accordingly expire at the close of business on the
Expiration Date, unless sooner terminated in accordance with Section 7, 8 or 18
hereof.

                                      -2-
<PAGE>   3

4.      LIMITED TRANSFERABILITY

        The Option shall be neither transferable nor assignable by Optionee
other than by will or the laws of descent and distribution following Optionee's
death and may be exercised only by Optionee during Optionee's lifetime.

5.      DATES OF EXERCISE

        The Option shall vest and become exercisable in accordance with the
vesting schedule set forth in Section 1 and shall remain so exercisable until
the Expiration Date or sooner termination of the option term under Section 7, 8
or 18 hereof.

6.      NO EMPLOYMENT OR SERVICE CONTRACT

        Nothing in this Agreement, in the stock purchase agreement to be
executed upon exercise of the Option or in the Plan shall confer upon Optionee
any right to continue in the Service of the Corporation for any period of
specific duration or interfere with or otherwise restrict in any way the rights
of the Corporation or Optionee, which rights are hereby expressly reserved by
each, to terminate Optionee's Service at any time for any reason whatsoever,
with or without cause.

7.      CESSATION OF SERVICE

        The option term specified in Section 3 hereof shall terminate (and the
Option shall cease to be outstanding) prior to the Expiration Date should any of
the following provisions apply:

               (a) Should Optionee cease to remain in Service for any reason
(other than death, Permanent Disability or pursuant to paragraph (e) below)
while the Option is outstanding, then the period for exercising the Option shall
be reduced to a ninety (90) day period commencing with the date of such
cessation of Service, but in no event shall the Option be exercisable at any
time after the Expiration Date. Upon the expiration of such ninety (90) day
period or (if earlier) upon the Expiration Date, the Option shall terminate and
cease to be outstanding.

               (b) Should Optionee die while the Option is outstanding, then the
personal representative of Optionee's estate or the person or persons to whom
the Option is transferred pursuant to Optionee's will or in accordance with the
laws of descent and distribution shall have the right to exercise the Option.
Such right shall lapse and the Option shall cease to be exercisable upon the
earlier of (i) the expiration of the twelve (12) month period measured from the
date of Optionee's death and (ii) the Expiration Date. Upon the expiration of
such twelve (12) month period or (if earlier) upon the Expiration Date, the
Option shall terminate and cease to be outstanding.

               (c) Should Optionee cease Service by reason of Permanent
Disability while the Option is outstanding, then Optionee shall have a period of
twelve (12) months (commencing with the date of such cessation of Service)
during which to exercise the Option, but in no event shall the Option be
exercisable at any time after the Expiration Date. Upon the expiration of such
twelve (12) month period or (if earlier) upon the Expiration Date, the Option
shall terminate and cease to be outstanding.

                                      -3-
<PAGE>   4

               (d) During the limited period of post-Service exercisability
applicable under subsection (a), (b) or (c) above, the Option may not be
exercised in the aggregate for more than the number of Option Shares in which
Optionee is vested at the time of his or her cessation of Service in accordance
with the vesting schedule specified in Section 1 hereof. To the extent Optionee
is not vested in the Option Shares at the time of his or her cessation of
Service, the Option shall immediately terminate and cease to be outstanding with
respect to such Option Shares.

               (e) Should (i) Optionee's Service be terminated for misconduct
(including, but not limited to, any act of dishonesty, willful misconduct, fraud
or embezzlement) or (ii) Optionee make any unauthorized use or disclosure of
confidential information or trade secrets of the Corporation or any Parent or
Subsidiary, then in any such event [WASHINGTON: the Option shall terminate
immediately and cease to remain outstanding] [CALIFORNIA ONLY: the vesting of
the Option shall immediately cease. The unvested portion of the Option shall
terminate immediately and cease to be outstanding. Optionee shall have 30 days
from the date of termination to exercise the vested portion of the Option. Upon
the expiration of such 30-day period, the vested portion of the Option shall
terminate and cease to be outstanding].

8.      SPECIAL TERMINATION

        The Option shall terminate in the event of any Corporate Transaction
except to the extent assumed by the successor corporation or parent thereof.

9.      ADJUSTMENT IN OPTION SHARES

               (a) Appropriate adjustments shall be made to (i) the total number
and/or class of securities subject to the Option and (ii) the Exercise Price in
the event any change is made to the outstanding Common Stock by reason of any
stock split, stock dividend, spin-off, recapitalization, combination of shares,
exchange of shares or other change affecting the outstanding Common Stock as a
class without the Corporation's receipt of consideration in order to reflect
such change and thereby preclude a dilution or enlargement of benefits
hereunder.

               (b) If the Option is to be assumed in connection with a Corporate
Transaction or is otherwise to remain outstanding then it shall be appropriately
adjusted immediately after such Corporate Transaction, to apply and pertain to
the number and class of securities that would have been issuable to Optionee in
the consummation of such Corporate Transaction had the Option been exercised
immediately prior to such Corporate Transaction, and appropriate adjustments
shall also be made to the Exercise Price payable per share, provided the
aggregate Exercise Price payable hereunder shall remain the same.

10.     PRIVILEGE OF STOCK OWNERSHIP

        The holder of the Option shall not have any stockholder rights with
respect to the Option Shares until such individual shall have exercised the
Option and paid the Exercise Price.

                                      -4-
<PAGE>   5

11.     MANNER OF EXERCISING OPTION

               (a) In order to exercise the Option with respect to all or any
part of the Option Shares for which the Option is at the time exercisable,
Optionee (or, in the case of exercise after Optionee's death, Optionee's
executor, administrator, heir or legatee, as the case may be) must take the
following actions:

                        (i) Execute and deliver to the Secretary of the
                Corporation a stock purchase agreement (the "Purchase
                Agreement") in the form in use by the Corporation at such time;

                        (ii) Pay the aggregate Exercise Price for the purchased
                Option Shares in one or more of the following alternative forms:

                                (A) full payment in cash or check made payable
                        to the Corporation or

                                (B) any other form that the Plan Administrator
                        may, in its discretion, approve in accordance with the
                        provisions of Section 16 hereof.

        Should the outstanding Common Stock be registered under Section 12(b) or
12(g) of the Exchange Act at the time the Option is exercised, then the Exercise
Price may also be paid as follows:

                                (C) in shares of Common Stock held by Optionee
                        for the requisite period necessary to avoid a charge to
                        the Corporation's earnings for financial reporting
                        purposes and valued at Fair Market Value on the Exercise
                        Date or

                                (D) to the extent the Option is exercised for
                        fully vested Option Shares, through a special sale and
                        remittance procedure pursuant to which Optionee shall
                        concurrently provide irrevocable written instructions
                        (1) to a Corporation-designated brokerage firm to effect
                        the immediate sale of the purchased shares and remit to
                        the Corporation, out of the sale proceeds available on
                        the settlement date, sufficient funds to cover the
                        aggregate Exercise Price payable for the purchased
                        shares plus all applicable federal, state and local
                        income and employment taxes required to be withheld by
                        the Corporation by reason of such purchase and (2) to
                        the Corporation to deliver the certificates for the
                        purchased shares directly to such brokerage firm in
                        order to complete the sale transaction; and

                (iii) Furnish to the Corporation appropriate documentation that
        the person exercising the Option (if other than Optionee) has the right
        to exercise the Option.

        Except to the extent the sale and remittance procedure is utilized in
connection with the exercise of the Option for fully vested Option Shares,
payment of the Exercise Price must accompany the Purchase Agreement delivered to
the Corporation.

                                      -5-
<PAGE>   6

               (b) As soon after the Exercise Date as practical, the Corporation
shall mail or deliver to or on behalf of Optionee (or the other person or
persons exercising the Option) a certificate or certificates representing the
Option Shares purchased under this Agreement with the appropriate legends
affixed thereto.

               (c) In no event may the Option be exercised for fractional
shares.

12.     COMPLIANCE WITH LAWS AND REGULATIONS

               (a) The exercise of the Option and the issuance of the Option
Shares upon such exercise shall be subject to compliance by the Corporation and
Optionee with all applicable requirements of law relating thereto and with all
applicable regulations of any Stock Exchange on which the Common Stock may be
listed at the time of such exercise and issuance.

               (b) In connection with the exercise of the Option, Optionee shall
execute and deliver to the Corporation such representations in writing as may be
requested by the Corporation in order for it to comply with the applicable
requirements of federal and state securities laws.

13.     SUCCESSORS AND ASSIGNS

        Except to the extent otherwise provided in Section 4 or 8 hereof, the
provisions of this Agreement shall inure to the benefit of, and be binding upon,
the successors, administrators, heirs, legal representatives and assigns of
Optionee and the successors and assigns of the Corporation.

14.     LIABILITY OF CORPORATION

        The inability of the Corporation to obtain approval from any regulatory
body having authority deemed by the Corporation to be necessary to the lawful
issuance and sale of any Common Stock pursuant to the Option shall relieve the
Corporation of any liability with respect to the nonissuance or nonsale of the
Common Stock as to which such approval shall not have been obtained. The
Corporation, however, shall use its best efforts to obtain all such approvals.

15.     NOTICES

        Any notice required to be given or delivered to the Corporation under
the terms of this Agreement shall be in writing and addressed to the Corporation
in care of the Corporate Secretary at its principal corporate offices. Any
notice required to be given or delivered to Optionee shall be in writing and
addressed to Optionee at the address indicated below Optionee's signature line
on this Agreement. All notices shall be deemed to have been given or delivered
upon personal delivery or upon deposit in the U.S. mail, postage prepaid and
properly addressed to the party to be notified.

16.     LOANS

        The Plan Administrator may, in its absolute discretion and without any
obligation to do so, assist Optionee in the exercise of the Option by (a)
authorizing the extension of a full-recourse loan to Optionee from the
Corporation or (b) permitting Optionee to pay the Exercise Price for the
purchased Option Shares in installments over a period of years. The terms of any

                                      -6-
<PAGE>   7

such loan or installment method of payment (including the interest rate, the
requirements for collateral and the terms of repayment) shall be established by
the Plan Administrator in its sole discretion.

17.     CONSTRUCTION

        This Agreement and the Option evidenced hereby are made and granted
pursuant to the Plan and are in all respects limited by and subject to the
express terms and provisions of the Plan. All decisions of the Plan
Administrator with respect to any question or issue arising under the Plan or
this Agreement shall be conclusive and binding on all persons having an interest
in the Option.

18.     STOCKHOLDER APPROVAL

        If the Option Shares covered by this Agreement exceed, as of the Grant
Date, the number of shares of Common Stock that may without stockholder approval
be issued under the Plan, then the Option shall be void with respect to such
excess shares, unless stockholder approval of an amendment sufficiently
increasing the number of shares of Common Stock issuable under the Plan is
obtained in accordance with the provisions of Section III of Article Four of the
Plan.

[NOTE: DELETE SECTION 19 FOR NSOS AND RENUMBER REMAINDER OF DOCUMENT]

19.     ADDITIONAL TERMS APPLICABLE TO INCENTIVE STOCK OPTIONS

        The following terms and conditions shall also apply to any portion of
the Option which qualifies as an Incentive Stock Option (the "ISO Portion"):

               (a) The ISO Portion shall cease to qualify for favorable tax
treatment as an Incentive Stock Option if (and to the extent) the ISO Portion is
exercised for one or more Option Shares: (i) more than three (3) months after
the date Optionee ceases to be an Employee for any reason other than death or
Permanent Disability or (ii) more than twelve (12) months after the date
Optionee ceases to be an Employee by reason of Permanent Disability.

               (b) Should the ISO Portion be designated in Section 1 hereof as
vested and exercisable in installments, then no installment under the ISO
Portion (whether annual or monthly) shall qualify for favorable tax treatment as
an Incentive Stock Option if (and to the extent) the aggregate Fair Market Value
(determined at the Grant Date) of the Common Stock for which such installment
first becomes exercisable hereunder would, when added to the aggregate value
(determined as of the respective date or dates of grant) of any earlier
installments of the Common Stock and any other securities for which the ISO
Portion or any other Incentive Stock Options granted to Optionee prior to the
Grant Date (whether under the Plan or any other option plan of the Corporation
or any Parent or Subsidiary) first become exercisable during the same calendar
year, exceed One Hundred Thousand Dollars ($100,000) in the aggregate. Should
such One Hundred Thousand Dollar ($100,000) limitation be exceeded in any
calendar year, the ISO Portion shall nevertheless become exercisable for the
excess shares in such calendar year as a Nonstatutory Stock Option.

               (c) Should Optionee hold, in addition to the ISO Portion, one or
more other options to purchase Common Stock that become exercisable for the
first time in the same

                                      -7-
<PAGE>   8

calendar year as the ISO Portion, then the foregoing limitations on the
exercisability of such options as Incentive Stock Options shall be applied on
the basis of the order in which such options are granted.

               (d) To obtain certain tax benefits afforded to ISOs, the Optionee
must hold the shares issued upon the exercise of the Option for two years after
the Grant Date and one year after the Exercise Date. Optionee may be subject to
the alternative minimum tax at the time of exercise. TAX ADVICE SHOULD BE
OBTAINED PRIOR TO EXERCISING THE OPTION OR DISPOSING OF THE SHARES ISSUED UPON
EXERCISE. By accepting the Option, Optionee agrees to promptly notify the
Corporation of any disposition of any of the purchased shares prior to the
expiration of such holding periods.]

20.     WITHHOLDING TAXES

        Optionee hereby agrees to make appropriate arrangements with the
Corporation or Parent or Subsidiary employing Optionee for the satisfaction of
all federal, state and local income and employment tax withholding requirements
applicable to the exercise of the Option.

21.     LIMITATION ON RIGHTS; NO RIGHT TO FUTURE GRANTS; EXTRAORDINARY ITEM OF
        COMPENSATION

        By entering into this Agreement and accepting the grant of the Option
evidenced hereby, Optionee acknowledges: (a) that the Plan is discretionary in
nature and may be suspended or terminated by the Corporation at any time; (b)
that the grant of the Option is a one-time benefit which does not create any
contractual or other right to receive future grants of options, or benefits in
lieu of options; (c) that all determinations with respect to any such future
grants, including, but not limited to, the times when options will be granted,
the number of shares subject to each option, the option price, and the time or
times when each option will be exercisable, will be at the sole discretion of
the Corporation; (d) that Optionee's participation in the Plan is voluntary; (e)
that the value of the Option is an extraordinary item of compensation which is
outside the scope of Optionee's employment contract, if any; (f) that the Option
is not part of normal or expected compensation for purposes of calculating any
severance, resignation, redundancy, end of service payments, bonuses,
long-service awards, pension or retirement benefits or similar payments; (g)
that the vesting of the Option ceases upon termination of employment or service
relationship with the Corporation for any reason except as may otherwise be
explicitly provided in the Plan or this Agreement or otherwise permitted by the
Plan Administrator; (h) that the future value of the underlying Option Shares is
unknown and cannot be predicted with certainty; and (i) that if the underlying
Option Shares do not increase in value, the Option will have no value.

22.     GOVERNING LAW

        The parties submit to the exclusive jurisdiction and venue of the
federal or state courts of Washington, County of King, to resolve issues that
may arise out of or relate to this Agreement and the Plan or the same subject
matter. This Agreement and the Plan shall be governed by the laws of the State
of Washington, excluding any conflicts or choice of law rule or principle that
might otherwise refer construction or interpretation of this Agreement and the
Plan to the substantive law of another jurisdiction.

                                      -8-
<PAGE>   9

[INSERT THE FOLLOWING FOR NON-US RESIDENTS:

23.     EMPLOYEE DATA PRIVACY

        By entering this Agreement, Optionee (a) authorizes the Corporation and
Optionee's employer, if different, and any agent of the Corporation
administering the Plan or providing Plan recordkeeping services, to disclose to
the Corporation or any of its affiliates any information and data the
Corporation requests in order to facilitate the grant of the Option and the
administration of the Plan; (b) waive any data privacy rights you may have with
respect to such information; and (c) authorize the Corporation and its agents to
store and transmit such information in electronic form.]

                                        TELEDESIC CORPORATION

                                        By:
                                           -------------------------------------
                                           Dennis James, Vice President and
                                           General Counsel

                                        ----------------------------------------
                                        Optionee Signature

                                        ----------------------------------------
                                        Print Name
                                        Address:
                                                --------------------------------

                                                --------------------------------

                                      -9-
<PAGE>   10

                                    APPENDIX

DEFINITIONS

        BOARD shall mean the Corporation's Board of Directors.

        COMMON STOCK shall mean the Corporation's Class A Common Stock.

        CORPORATE TRANSACTION shall mean any of the following
stockholder-approved transactions to which the Corporation is a party, whether
occurring before or after the Section 12(b) or 12(g) Registration Date:

               i. a merger or consolidation in which the Corporation is not the
surviving entity, except for a transaction the principal purpose of which is to
change the state in which the Corporation is incorporated;

               ii. the sale, transfer or other disposition of all or
substantially all of the Corporation's assets in complete liquidation or
dissolution of the Corporation; or

               iii. any reverse merger in which the Corporation is the surviving
entity but in which securities possessing more than fifty percent (50%) of the
total combined voting power of the Corporation's outstanding securities are
transferred to a person or persons different from the persons holding those
securities immediately prior to such merger.

        CORPORATION shall mean Teledesic Corporation, a Delaware corporation.

        EMPLOYEE shall mean an individual who is in the employ of the
Corporation or any Parent or Subsidiary, subject to the control and direction of
the employer entity as to both the work to be performed and the manner and
method of performance.

        EXCHANGE ACT shall mean the Securities and Exchange Act of 1934, as
amended from time to time.

        EXERCISE DATE shall mean the date on which the Option shall have been
exercised in accordance with Section 10 of this Agreement.

        EXERCISE PRICE shall mean the exercise price per share as specified in
Section 1 of this Agreement.

        EXPIRATION DATE shall mean the date on which the Option expires as set
forth in Section 1 of this Agreement.

        FAIR MARKET VALUE per share of Common Stock on any relevant date under
the Plan shall mean the value determined in accordance with the following
provisions:

                (i) If the Common Stock is not at the time listed or admitted to
        trading on any Stock Exchange but is traded on the Nasdaq National
        Market, the Fair Market Value shall be the closing selling price per
        share of Common Stock on the date in question, as the price is reported
        by the National Association of Securities Dealers, Inc. through the
        Nasdaq National Market or any successor system. If there is no closing
        selling price for the Common Stock on the date in question, then the
        Fair Market Value shall be the closing selling price on the last
        preceding date for which such quotation exists.

                (ii) If the Common Stock is at the time listed or admitted for
        trading on any Stock Exchange, then the Fair Market Value shall be the
        closing selling price per share of Common Stock on the date in question
        on the Stock Exchange determined by the Plan Administrator to be the
        primary market for the Common Stock, as such price is officially quoted
        in the composite tape of transactions on such exchange. If there is no
        closing selling price for the Common Stock

<PAGE>   11

        on the date in question, then the Fair Market Value shall be the closing
        selling price on the last preceding date for which such quotation
        exists.

                (iii) If the Common Stock is at the time neither listed nor
        admitted to trading on any Stock Exchange nor traded on the Nasdaq
        National Market, then such Fair Market Value shall be determined by the
        Plan Administrator after taking into account such factors as the Plan
        Administrator shall deem appropriate.

        GRANT DATE shall mean the date of grant of the Option as set forth in
Section 1 in this Agreement.

        INCENTIVE STOCK OPTION shall mean a stock option that satisfies the
requirements of Section 422 of the Internal Revenue Code of 1986, as amended.

        ISO PORTION shall mean the portion of the Option which qualifies as an
Incentive Stock Option.

        NONSTATUTORY STOCK OPTION shall mean an option not intended to meet the
requirements of Section 422 of the Internal Revenue Code of 1986, as amended.

        OPTION shall mean the option to purchase shares of Common Stock as set
forth in Section 1 of this Agreement.

        OPTION SHARES shall mean the number of shares of Common Stock subject to
the Option.

        OPTIONEE shall mean the person to whom the Option is granted under this
Agreement.

        PARENT shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

        PERMANENT DISABILITY OR PERMANENTLY DISABLED shall mean the inability to
engage in any substantial gainful activity by reason of any medically
determinable physical or mental impairment that can be expected to result in
death or that has lasted or can be expected to last for a continuous period of
not less than twelve (12) months.

        PLAN shall mean the Corporation's Restated 1994 Stock Option/Stock
Issuance Plan.

        PLAN ADMINISTRATOR shall mean either the Board or a committee of Board
members, to the extent the committee is at the time responsible for the
administration of the Plan in accordance with Article I, Section IV of the Plan.

        PURCHASE AGREEMENT shall mean the stock purchase agreement in the form
in use by the Corporation at the time the Option is exercised.

        SECTION 12(g) REGISTRATION DATE shall mean the date on which the initial
registration of any class of securities of the Corporation under Section 12(g)
of the Exchange Act first becomes effective.

        SERVICE shall mean the provision of services to the Corporation or any
Parent or Subsidiary by an individual in the capacity of an Employee, a
non-employee member of the Board or a consultant or independent contractor.

        STOCK EXCHANGE shall mean the American Stock Exchange, Inc. or the New
York Stock Exchange, Inc.

        SUBSIDIARY shall mean each corporation (other than the Corporation) in
an unbroken chain of corporations beginning with the Corporation, provided each
such corporation in the unbroken chain (other than the last corporation) owns,
at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other
corporations in such chain.

                                       -2-<PAGE>   1
                                                        STOCK PURCHASE AGREEMENT
                                                              REVISED 9/29/99

                              TELEDESIC CORPORATION
                            STOCK PURCHASE AGREEMENT

        This Stock Purchase Agreement (this "Agreement") is made as of
__________, ____, by and between Teledesic Corporation, a Delaware corporation
(the "Corporation"), and __________________________________, a resident of
_______________, the holder of a stock option ("Optionee") under the
Corporation's [ ] Restated 1994 Stock Option/Stock Issuance Plan (the "Plan")
[ ] 1996 Restated California Stock Option/Stock Issuance Plan (the "Plan").

        All capitalized terms in this Agreement shall have the meaning assigned
to them in this Agreement, the attached Appendix A or the Plan.

A.      EXERCISE OF OPTION

        1. EXERCISE

        Optionee hereby purchases ____________ shares of Common Stock as set
forth below (the "Purchased Shares") pursuant to the option(s) (the "Option")
granted to Optionee on the date(s) set forth below under the Plan at the
exercise price(s) set forth below (the "Exercise Price"):

<TABLE>
<CAPTION>
                          # of Shares in                                # of
     Grant Date         Total Option Grant         ISO/NSO         Purchased Shares      Exercise Price
     ----------         ------------------         -------         ----------------      --------------
<S>                     <C>                    <C>                 <C>                   <C>
   _______________       ________________      ISO [ ] NSO [ ]     ________________      _____________

   _______________       ________________      ISO [ ] NSO [ ]     ________________      _____________

   _______________       ________________      ISO [ ] NSO [ ]     ________________      _____________

   _______________       ________________      ISO [ ] NSO [ ]     ________________      _____________

   _______________       ________________      ISO [ ] NSO [ ]     ________________      _____________
</TABLE>

        2. PAYMENT

        Concurrently with the delivery of this Agreement to the Corporate
Secretary, Optionee shall pay the Exercise Price for the Purchased Shares in
accordance with the provisions of the Option Agreement and shall deliver
whatever additional documents may be required by the Option Agreement as a
condition for exercise with respect to the Purchased Shares.

        3. STOCKHOLDER RIGHTS

        Until such time as the Corporation actually exercises its First Refusal
Right (as defined in Section D.1 hereof) under this Agreement, Optionee (or any
successor in interest) shall have all the rights of a stockholder (including
voting, dividend and liquidation rights) with respect to the Purchased Shares,
subject, however, to the transfer restrictions of Section C hereof.

<PAGE>   2
B.      SECURITIES LAW COMPLIANCE

        1. EXEMPTION FROM REGISTRATION/RESTRICTED SECURITIES

        Optionee hereby represents and warrants as follows:

        (a) Optionee is aware that the Purchased Shares have not been registered
            under the Securities Act or any state securities laws, pursuant to
            exemption(s) from registration. Optionee understands that the
            reliance by the Corporation on such exemption(s) is predicated in
            part upon the truth and accuracy of the statements by Optionee in
            this Agreement;

        (b) Optionee understands that because the Purchased Shares have not been
            registered under the Securities Act, Optionee must continue to bear
            the economic risk of the investment for an indefinite time. Optionee
            further understands that the Purchased Shares cannot be sold unless
            the Purchased Shares are subsequently registered or an exemption
            from registration is available and that Rule 144 of the SEC issued
            under the Securities Act is not presently available to exempt the
            resale of the Purchased Shares from the registration requirements of
            the Securities Act;

        (c) Optionee has been furnished with the Plan, the Plan Summary,
            Additional Information Regarding Risk Factors, Financial Statements
            of the Corporation, and all other information that Optionee deems
            necessary to evaluate the merits and risks of the purchase of the
            Purchased Shares;

        (d) Optionee has had the opportunity to ask questions and receive
            answers concerning the information received about the Purchased
            Shares and the Corporation and has been given the opportunity to
            obtain any additional information the Optionee deems necessary to
            verify the accuracy of any information obtained concerning the
            Purchased Shares and the Corporation. Optionee understands that such
            discussions, as well as any written information issued by the
            Corporation, were intended to describe the aspects of the
            Corporation's business and prospects which the Company believes to
            be material, but were not necessarily a thorough or exhaustive
            description;

        (e) Optionee hereby represents and warrants that Optionee is purchasing
            the Purchased Shares for Optionee's own account for investment and
            not with a view to the sale or distribution of all or any part
            thereof, and no one other than the Optionee has any beneficial
            interest in the Purchased Shares.

        2. DISPOSITION OF SHARES

        Optionee hereby agrees that Optionee shall make no disposition of the
Purchased Shares (other than a permitted transfer under Section C.1 hereof)
unless and until there is compliance with all of the following requirements:

               (a) Optionee shall have provided the Corporation with a written
        summary of the terms and conditions of the proposed disposition.

                                      -2-
<PAGE>   3
               (b) Optionee shall have complied with all requirements of this
        Agreement applicable to the disposition of the Purchased Shares.

               (c) Optionee shall have provided the Corporation with written
        assurances, in form and substance satisfactory to the Corporation, that
        (i) the proposed disposition does not require registration of the
        Purchased Shares under the Securities Act or (ii) all appropriate action
        necessary for compliance with the registration requirements of the
        Securities Act or of any exemption from registration available under the
        Securities Act (including Rule 144) has been taken.

        The Corporation shall not be required to (i) transfer on its books any
Purchased Shares that have been sold or transferred in violation of the
provisions of this Agreement or (ii) treat as the owner of the Purchased Shares,
or otherwise accord voting, dividend or liquidation rights to, any transferee to
whom the Purchased Shares have been transferred in contravention of this
Agreement.

        3. RESTRICTIVE LEGENDS

        The stock certificates for the Purchased Shares shall be endorsed with
restrictive legends, including one or more of the following legends:

               (a) "The securities evidenced by this certificate have not been
        registered under the Securities Act of 1933, as amended (the "Act"), or
        applicable state law, and no interest therein may be sold, distributed,
        assigned, offered, pledged or otherwise transferred unless (i) there is
        an effective registration statement under the Act and applicable state
        securities laws covering any such transaction involving said securities,
        (ii) this corporation receives an opinion of legal counsel for the
        holder of these securities satisfactory to this corporation stating that
        such transaction is exempt from registration or (iii) this corporation
        otherwise satisfies itself that such transaction is exempt from
        registration.

               (b) "The shares represented by this certificate may not be sold,
        assigned, transferred, encumbered, or in any manner disposed of except
        in conformity with the terms of a written agreement dated ________, 19__
        between the Corporation and the registered holder of the shares (or the
        predecessor in interest to the shares). Such agreement grants certain
        rights of first refusal to the Corporation (or its assignees) upon the
        sale, assignment, transfer, encumbrance or other disposition of the
        shares. A copy of such agreement is maintained at the Corporation's
        principal corporate offices."

C.      TRANSFER RESTRICTIONS

        1. RESTRICTION ON TRANSFER

        Purchased Shares shall not be transferred, assigned, encumbered or
otherwise made the subject of disposition in contravention of the First Refusal
Right under Section D hereof or the market standoff provisions of Section C.3
hereof. Such restrictions on transfer, however, shall not apply to (a) a
gratuitous transfer of the Purchased Shares, provided, and only if, Optionee
obtains the Corporation's prior written consent to such transfer, (b) a transfer
of title to the

                                      -3-
<PAGE>   4
Purchased Shares effected pursuant to Optionee's will or the laws of intestate
succession, or (c) a transfer to the Corporation in pledge as security for any
purchase-money indebtedness incurred by Optionee in connection with the
acquisition of the Purchased Shares.

        2. TRANSFEREE OBLIGATIONS

        Each person (other than the Corporation) to whom the Purchased Shares
are transferred by means of one of the permitted transfers specified in Section
C.1 hereof must, as a condition precedent to the validity of such transfer,
acknowledge in writing to the Corporation that such person is bound by the
provisions of this Agreement and that the transferred shares are subject to (a)
the First Refusal Right granted hereunder and (b) the market standoff provisions
of Section C.3 hereof, to the same extent such shares would be so subject if
retained by Optionee.

        3. MARKET STANDOFF

               (a) In connection with any underwritten public offering by the
Corporation of its equity securities pursuant to an effective registration
statement filed under the Securities Act, including the Corporation's initial
public offering, Owner shall not sell, make any short sale of, loan,
hypothecate, pledge, grant any option for the purchase of, or otherwise dispose
or transfer for value or otherwise agree to engage in any of the foregoing
transactions with respect to, any Purchased Shares without the prior written
consent of the Corporation or its underwriters. Such limitations shall be in
effect for such period of time from and after the effective date of the final
prospectus for the offering as may be requested by the Corporation or such
underwriters; provided, however, that in no event shall such period exceed one
hundred eighty (180) days. The limitations of this Section C.3 shall in all
events terminate two (2) years after the effective date of the Corporation's
initial public offering.

               (b) Owner shall be subject to the market standoff provisions of
this Section C.3, provided, and only if and to the same extent, that the
officers and directors of the Corporation are also subject to similar
arrangements.

               (c) In the event of any stock split, stock dividend,
recapitalization, combination of shares, exchange of shares or other change
affecting the Corporation's outstanding Common Stock effected as a class without
the Corporation's receipt of consideration, then any new, substituted or
additional securities distributed with respect to the Purchased Shares shall be
immediately subject to the provisions of this Section C.3 to the same extent the
Purchased Shares are at such time covered by such provisions.

               (d) In order to enforce the limitations of this Section C.3, the
Corporation may impose stop-transfer instructions with respect to the Purchased
Shares until the end of the applicable standoff period.

D.      RIGHT OF FIRST REFUSAL

        1. GRANT

        The Corporation is hereby granted the right of first refusal (the "First
Refusal Right"), exercisable in connection with any proposed transfer of the
Purchased Shares. For purposes of

                                      -4-
<PAGE>   5
this Section D, the term "transfer" shall include any sale, assignment, pledge,
encumbrance or other disposition of the Purchased Shares intended to be made by
Owner, but shall not include any of the permitted transfers under Section C.1
hereof.

        2. NOTICE OF INTENDED DISPOSITION

        In the event any Owner of the Purchased Shares desires to accept a bona
fide third-party offer for the transfer of any or all of such shares (the
Purchased Shares subject to such offer to be hereinafter called the "Target
Shares"), Owner shall promptly (a) deliver to the Corporate Secretary written
notice (the "Disposition Notice") of the terms and conditions of the offer,
including the purchase price and the identity of the third-party offeror, and
(b) provide satisfactory proof that the disposition of the Target Shares to such
third-party offeror would not be in contravention of the provisions set forth in
Sections B and C hereof.

        3. EXERCISE OF RIGHT

        The Corporation (or its assignees) shall, for a period of twenty-five
(25) days following receipt of the Disposition Notice, have the right to
repurchase any or all of the Target Shares subject to the Disposition Notice
upon the same terms and conditions as those specified therein or upon such other
terms and conditions (not materially different from those specified in the
Disposition Notice) to which Owner consents. Such right shall be exercisable by
delivery of written notice (the "Exercise Notice") to Owner prior to the
expiration of the twenty-five (25) day exercise period. If such right is
exercised with respect to all the Target Shares, then the Corporation (or its
assignees) shall effect the repurchase of such shares, including payment of the
purchase price, not more than five (5) business days after delivery of the
Exercise Notice, at which time Owner shall deliver to the Corporation the
certificates representing the Target Shares to be repurchased, each certificate
to be properly endorsed for transfer.

        Should the purchase price specified in the Disposition Notice be payable
in property other than cash or evidences of indebtedness, the Corporation (or
its assignees) shall have the right to pay the purchase price in the form of
cash equal in amount to the value of such property. If Owner and the Corporation
(or its assignees) cannot agree on such cash value within ten (10) days after
the Corporation's receipt of the Disposition Notice, the valuation shall be made
by an appraiser of recognized standing selected by Owner and the Corporation (or
its assignees) or, if they cannot agree on an appraiser within twenty (20) days
after the Corporation's receipt of the Disposition Notice, each shall select an
appraiser of recognized standing and the two (2) appraisers shall designate a
third appraiser of recognized standing, whose appraisal shall determine such
value. The cost of such appraisal shall be shared equally by Owner and the
Corporation. The closing shall then be held on the later of (a) the fifth
business day following delivery of the Exercise Notice and (b) the fifth
business day after such cash valuation shall have been made.

        4. NONEXERCISE OF RIGHT

        In the event the Exercise Notice is not given to Owner within
twenty-five (25) days following the date of the Corporation's receipt of the
Disposition Notice, Owner shall have a period of thirty (30) days thereafter in
which to sell or otherwise dispose of the Target Shares to the third-party
offeror identified in the Disposition Notice upon terms and conditions
(including

                                      -5-
<PAGE>   6
the purchase price) no more favorable to such third-party offeror than those
specified in the Disposition Notice; provided, however, that any such sale or
disposition must not be effected in contravention of the provisions of Section B
hereof. The third-party offeror shall acquire the Target Shares free and clear
of the First Refusal Right hereunder, but the acquired shares shall remain
subject to (a) the securities law restrictions of Section B.1 hereof and (b) the
market stand-off provisions of Section C.3. In the event Owner does not effect
such sale or disposition of the Target Shares within the specified thirty (30)
day period, the First Refusal Right shall continue to be applicable to any
subsequent disposition of the Target Shares by Owner until such right lapses in
accordance with Section D.7 hereof.

        5. PARTIAL EXERCISE OF RIGHT

        In the event the Corporation (or its assignees) makes a timely exercise
of the First Refusal Right with respect to a portion, but not all, of the Target
Shares specified in the Disposition Notice, Owner shall have the option,
exercisable by written notice to the Corporation delivered within five (5) days
after Owner's receipt of the Exercise Notice, to effect the sale of the Target
Shares pursuant to either of the following alternatives:

               (a) sale or other disposition of all the Target Shares to the
        third-party offeror identified in the Disposition Notice, but in full
        compliance with the requirements of Section D.4 hereof, as if the
        Corporation did not exercise the First Refusal Right hereunder; or

               (b) sale to the Corporation (or its assignees) of the portion of
        the Target Shares that the Corporation (or its assignees) has elected to
        purchase, such sale to be effected in substantial conformity with the
        provisions of Section D.3 hereof.

        Failure of Owner to deliver timely notification to the Corporation under
this Section D.5 shall be deemed to be an election by Owner to sell the Target
Shares pursuant to alternative (a) above.

        6. RECAPITALIZATION/REORGANIZATION

               (a) In the event any stock split, stock dividend, spinoff,
recapitalization, combination of shares, exchange of shares or other transaction
affecting the outstanding Common Stock as a class is effected without the
Corporation's receipt of consideration, any new, substituted or additional
securities or other property that is by reason of such transaction distributed
with respect to the Purchased Shares shall be immediately subject to the First
Refusal Right hereunder, but only to the extent the Purchased Shares are at the
time covered by such right.

               (b) In the event of a Reorganization, the First Refusal Right
shall remain in full force and effect and shall apply to the new capital stock
or other property received in exchange for the Purchased Shares in consummation
of the Reorganization, but only to the extent the Purchased Shares are at the
time covered by such right.

                                      -6-
<PAGE>   7
        7. LAPSE

        The First Refusal Right under this Section D shall lapse and cease to
have effect upon the earliest to occur of (a) the first date on which shares of
the Common Stock are held of record by more than five hundred (500) persons, (b)
a determination is made by the Board that a public market exists for the
outstanding shares of Common Stock, and (c) a firm commitment underwritten
public offering, pursuant to an effective registration statement under the
Securities Act, covering the offer and sale of the Common Stock in the aggregate
amount of at least ten million dollars ($10,000,000). The market standoff
provisions of Section C.3 hereof shall, however, continue to remain in full
force and effect following the lapse of the First Refusal Right hereunder.

E.      GENERAL PROVISIONS

        1. ASSIGNMENT

        The Corporation may assign its First Refusal Right to any person or
entity selected by the Board, including, without limitation, one or more
stockholders of the Corporation.

        2. NO EMPLOYMENT OR SERVICE CONTRACT

        Nothing in this Agreement or in the Plan shall confer upon Optionee any
right to continue in Service for any period of specific duration or interfere
with or otherwise restrict in any way the rights of the Corporation (or any
Parent or Subsidiary) or Optionee, which rights are hereby expressly reserved by
each, to terminate Optionee's Service at any time for any reason whatsoever,
with or without cause.

        3. NOTICES

        Any notice required in connection with (a) the First Refusal Right or
(b) the disposition of any Purchased Shares covered thereby shall be given in
writing and shall be deemed effective upon personal delivery or upon deposit in
the U.S. mail, registered or certified, postage prepaid and addressed to the
party entitled to such notice at the address indicated below such party's
signature line on this Agreement or at such other address as such party may
designate by ten (10) days' advance written notice under this Section E.3 to all
other parties to this Agreement.

        4. NO WAIVER

        The failure of the Corporation (or its assignees) in any instance to
exercise the First Refusal Right shall not constitute a waiver of any other
rights of first refusal that may subsequently arise under the provisions of this
Agreement or any other agreement between the Corporation and Optionee. No waiver
of any breach or condition of this Agreement shall be deemed to be a waiver of
any other or subsequent breach or condition, whether of like or different
nature.

                                      -7-
<PAGE>   8
        5. CANCELLATION OF SHARES

        If the Corporation (or its assignees) shall make available, at the time
and place and in the amount and form provided in this Agreement, the
consideration for the Purchased Shares to be repurchased in accordance with the
provisions of this Agreement, then, from and after such time, the person from
whom such shares are to be repurchased shall no longer have any rights as a
holder of such shares (other than the right to receive payment of such
consideration in accordance with this Agreement). Such shares shall be deemed
purchased in accordance with the applicable provisions hereof, and the
Corporation (or its assignees) shall be deemed the owner and holder of such
shares, whether or not the certificates therefor have been delivered as required
by this Agreement.

F.      MISCELLANEOUS PROVISIONS

        1. OPTIONEE UNDERTAKING

        Optionee hereby agrees to take whatever additional action and execute
whatever additional documents the Corporation may deem necessary or advisable in
order to carry out or effect one or more of the obligations or restrictions
imposed on either Optionee or the Purchased Shares pursuant to the express
provisions of this Agreement.

        2. AGREEMENT IS ENTIRE CONTRACT

        This Agreement constitutes the entire contract between the parties
hereto with regard to the subject matter hereof. This Agreement is made pursuant
to the provisions of the Plan and shall in all respects be construed in
conformity with the express terms and provisions of the Plan.

        3. SUCCESSORS AND ASSIGNS

        The provisions of this Agreement shall inure to the benefit of, and be
binding upon, the Corporation and its successors and assigns and Optionee and
Optionee's legal representatives, heirs, legatees, distributees, assigns and
transferees by operation of law, whether or not any such person shall have
become a party to this Agreement and agreed in writing to join herein and be
bound by the terms and conditions hereof.

        4. GOVERNING LAW

        The parties submit to the exclusive jurisdiction and venue of the
federal or state courts of Washington, County of King, to resolve issues that
may arise out of or relate to this Agreement and the Plan or the same subject
matter. This Agreement and the Plan shall be governed by the laws of the State
of Washington, excluding any conflicts or choice of law rule or principle that
might otherwise refer construction or interpretation of this Agreement and the
Plan to the substantive law of another jurisdiction.

                                      -8-
<PAGE>   9
        IN WITNESS WHEREOF, the parties have executed this Agreement on the day
and year first indicated above.

                                       TELEDESIC CORPORATION

                                       By:
                                                 -------------------------------
                                       Title:
                                                --------------------------------

                                       OPTIONEE:

                                       -----------------------------------------
                                       Name:
                                                --------------------------------
                                       Address:
                                                --------------------------------

                                       -----------------------------------------
                                       Social Security/Taxpayer
                                       I.D. Number

                                      -9-
<PAGE>   10
                                    APPENDIX

DEFINITIONS

        A. BOARD shall mean the Corporation's Board of Directors.

        B. COMMON STOCK shall mean the Corporation's Class A Common Stock.

        C. EXCHANGE ACT shall mean the Securities Exchange Act of 1934, as
amended.

        D. OPTION AGREEMENT shall mean the agreement or agreements between the
Corporation and Optionee evidencing the Option.

        E. OWNER shall mean Optionee and all subsequent holders of the Purchased
Shares who derive their chain of ownership through a permitted transfer from
Optionee in accordance with Section C.1 of this Agreement.

        F. PARENT shall mean any corporation (other than the Corporation) in an
unbroken chain of corporations ending with the Corporation, provided each
corporation in the unbroken chain (other than the Corporation) owns, at the time
of the determination, stock possessing fifty percent (50%) or more of the total
combined voting power of all classes of stock in one of the other corporations
in such chain.

        G. REORGANIZATION shall mean any of the following transactions:

                (i) a merger or consolidation in which the Corporation is not
        the surviving entity,

                (ii) a sale, transfer or other disposition of all or
        substantially all of the Corporation's assets,

                (iii) a reverse merger in which the Corporation is the surviving
        entity but in which the Corporation's outstanding voting securities are
        transferred in whole or in part to a person or persons other than those
        who held such securities immediately prior to the merger, or

                (iv) any transaction effected primarily to change the state in
        which the Corporation is incorporated or to create a holding company
        structure.

        H. SEC shall mean the Securities and Exchange Commission.

        I. SECURITIES ACT shall mean the Securities Act of 1933, as amended.

        J. SERVICE shall mean the provision of services to the Corporation or
any Parent or Subsidiary by an individual in the capacity of an employee,
subject to the control and direction of the employer entity as to both the work
to be performed and the manner and method of performance, a nonemployee member
of the Board or a consultant or independent contractor.

        K. SUBSIDIARY shall mean each corporation (other than the Corporation)
in an unbroken chain of corporations beginning with the Corporation, provided
each such corporations in the unbroken chain (other than the last corporation)
owns, at the time of the determination, stock possessing fifty percent (50%) or
more of the total combined voting power of all classes of stock in one of the
other corporations in such chain.

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