Document:

Exhibit 10.1

 

 

 

PREFERRED REDEMPTION AGREEMENT

among

SKYTERRA COMMUNICATIONS, INC.

and

EACH OF THE SIGNATORIES HERETO

Dated May 6, 2006

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  	 

	
   

  	
   

  	
   

  	 

	
  SECTION 1.

  	
  DEFINITIONS

  	
  1

  	 

	
   

  	
   

  	
   

  
	
  SECTION 2.

  	
  PURCHASE OF STOCK BY THE PURCHASERS

  	
  3

  
	
   

  	
   

  	 

	
  2.1

  	
  SALE
  AND PURCHASE OF STOCK

  	
  3

  	 

	
  2.2

  	
  REDEMPTION
  OF SERIES A STOCK

  	
  3

  
	
  2.3

  	
  FORM OF
  CONSIDERATION

  	
  4

  
	
   

  	
   

  	 

	
  SECTION 3.

  	
  REPRESENTATIONS AND WARRANTIES OF THE PURCHASERS

  	
  4

  	 

	
   

  	
   

  	 

	
  3.1

  	
  ORGANIZATION

  	
  4

  	 

	
  3.2

  	
  DUE
  AUTHORIZATION

  	
  4

  
	
  3.3

  	
  DUE
  EXECUTION; ENFORCEABILITY

  	
  4

  
	
  3.4

  	
  CONSENTS

  	
  5

  
	
  3.5

  	
  NO
  CONFLICTS

  	
  5

  
	
  3.6

  	
  INVESTMENT
  REPRESENTATIONS AND WARRANTIES

  	
  5

  
	
  3.7

  	
  NO
  BROKERS

  	
  6

  
	
  3.8

  	
  SERIES A
  STOCK

  	
  6

  
	
   

  	
   

  	 

	
  SECTION 4.

  	
  REPRESENTATIONS AND WARRANTIES OF THE COMPANY

  	
  6

  	 

	
   

  	
   

  	 

	
  4.1

  	
  ORGANIZATION

  	
  6

  	 

	
  4.2

  	
  DUE
  AUTHORIZATION

  	
  6

  
	
  4.3

  	
  DUE
  EXECUTION; ENFORCEABILITY

  	
  7

  
	
  4.4

  	
  CONSENTS

  	
  7

  
	
  4.5

  	
  NO
  CONFLICTS

  	
  7

  
	
  4.6

  	
  CAPITALIZATION

  	
  7

  
	
  4.7

  	
  DUE
  ISSUANCE AND AUTHORIZATION OF CAPITAL STOCK

  	
  8

  
	
  4.8

  	
  FORM S-3
  ELIGIBILITY

  	
  8

  
	
  4.9

  	
  BOARD
  OF DIRECTORS

  	
  9

  
	
   

  	
   

  	 

	
  SECTION 5.

  	
  CONDITIONS PRECEDENT TO OBLIGATIONS OF THE COMPANY

  	
  9

  	 

	
   

  	
   

  	 

	
  5.1

  	
  NO
  LITIGATION

  	
  9

  	 

	
  5.2

  	
  PERFORMANCE

  	
  9

  
	
  5.3

  	
  DELIVERIES

  	
  9

  
	
   

  	
   

  	 

	
  SECTION 6.

  	
  CONDITIONS PRECEDENT TO THE OBLIGATIONS OF THE PURCHASERS

  	
  9

  	 

	
   

  	
   

  	 

	
  6.1

  	
  NO
  LITIGATION

  	
  9

  	 

	
  6.2

  	
  PERFORMANCE

  	
  10

  
	
  6.3

  	
  DELIVERIES

  	
  10

  
	
   

  	
   

  	 

	
  SECTION 7.

  	
  CLOSING

  	
  10

  	 

	
   

  	
   

  	 

	
  SECTION 8.

  	
  COVENANTS

  	
  10

  	 

	
   

  	
   

  	 

	
  8.1

  	
  THE
  RIGHTS OFFERING

  	
  10

  	 

	
  8.2

  	
  AMENDMENTS
  TO THE RIGHTS OF THE PURCHASERS

  	
  12

  
						

 

i

 

	
  8.3

  	
  TRANSFER
  OF NON-VOTING STOCK

  	
  13

  	 

	
  8.4

  	
  COOPERATION
  WITH THE RIGHTS OFFERING

  	
  14

  
	
  8.5

  	
  FURTHER
  ASSURANCES

  	
  14

  
	
   

  	
   

  	 

	
  SECTION 9.

  	
  MISCELLANEOUS NOTICES

  	
  14

  	 

	
   

  	
   

  	 

	
  9.2

  	
  INDEMNIFICATION

  	
  15

  	 

	
  9.3

  	
  FEES
  AND EXPENSES

  	
  15

  
	
  9.4

  	
  SURVIVAL
  OF REPRESENTATIONS AND WARRANTIES ETC

  	
  15

  
	
  9.5

  	
  ASSIGNMENT

  	
  15

  
	
  9.6

  	
  LEGEND

  	
  16

  
	
  9.7

  	
  REMOVAL
  OF LEGEND

  	
  16

  
	
  9.8

  	
  ENTIRE
  AGREEMENT

  	
  16

  
	
  9.9

  	
  WAIVERS
  AND AMENDMENTS

  	
  16

  
	
  9.10

  	
  GOVERNING
  LAW; JURISDICTION; VENUE; PROCESS

  	
  17

  
	
  9.11

  	
  COUNTERPARTS

  	
  17

  
	
  9.12

  	
  HEADINGS

  	
  17

  
							

 

ii

 

PREFERRED
REDEMPTION AGREEMENT

 

THIS PREFERRED REDEMPTION AGREEMENT (this “Agreement”) is made
this 6th day of May, 2006 among SkyTerra Communications, Inc., a Delaware
corporation (the “Company”),
and each of the signatories identified on the signature page to this
Agreement (collectively, the “Purchasers” and, individually, a “Purchaser”).

 

W I T N E S S E T H:

 

WHEREAS, each Purchaser owns shares of the
Company’s Series A Stock, Common Stock, Non-Voting Stock and Warrants;

 

WHEREAS, in order to redeem the Series A
Stock from the Purchasers, the Board of Directors has determined that it is in
the best interests of the Company and its stockholders to effect a rights
offering (“Rights
Offering”) and to distribute non-transferable rights (the “Rights”) to purchase
an aggregate of 6,661,150 shares of Common Stock to holders of Common Stock and
Non-Voting Stock at the Subscription Price and the Purchasers are agreeing to
waive their Rights with respect to the Series A Stock and the Warrants;
and

 

WHEREAS, Purchasers, jointly and severally,
have agreed to back-stop the Rights Offering by acquiring all shares not
otherwise subscribed for in the Rights Offering at the same price at which
shares of Common Stock will be offered to the Company’s other stockholders
pursuant to the Rights Offering;

 

NOW, THEREFORE, in consideration of the
premises and the mutual covenants and agreements contained in this Agreement,
the parties to this Agreement hereby agree as follows:

 

Section 1.                    Definitions.
For purposes of this Agreement, the following terms will have the meaning set
forth below:

 

“Affiliate”
of any Person means any Person that directly or indirectly controls, or is
under common control with, or is controlled by, such Person. As used in this
definition, “control” (including with its correlative meanings, “controlled by”
and “under common control with”) shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of the management or
policies of a Person (whether through ownership of securities or partnership or
other ownership interests, by contract or otherwise).

 

“Agreement”
means this Preferred Redemption Agreement.

 

“Board
of Directors” means the Board of Directors of the
Company.

 

“Business
Day” means any day, other than Saturday, Sunday or
a federal holiday, and shall consist of the time period from 12:01 a.m.
through 12:00 midnight Eastern time.

 

“Closing”
has the meaning assigned it in Section 2.1.

 

 

“Closing
Date” has the meaning assigned it in Section 7.

 

“Common
Stock” means the Company’s Common Stock, par value
$0.01 per share.

 

“Company”
has the meaning assigned it in the Preamble.

 

“Disposition”
has the meaning assigned it in Section 8.3(b).

 

“Encumbrances”
means any liens, claims, judgments, charges,
mortgages, security interests, pledges, other encumbrances or preemptive or any
other similar rights of any or all of the stockholders of the Company or
others.

 

“Indemnitees”
has the meaning assigned it in Section 9.2.

 

“Non-Voting
Stock” means the Company’s Non-Voting Common
Stock, par value $0.01 per share.

 

“Notice”
has the meaning assigned it in Section 8.3(a).

 

“Original
Investment Agreement” means the Amended and
Restated Securities Purchase Agreement among the Company and certain of the
Purchasers dated as of June 4, 1999, as amended by the Investment
Agreement among the Company and certain of the Purchasers dated as of April 2,
2002.

 

“Person”
includes all natural persons, corporations, business trusts, limited liability
companies, associations, companies, partnerships, joint ventures and other
entities and governments and agencies and political subdivisions.

 

“Purchasers”
has the meaning assigned it in the Preamble.

 

“Redemption”
has the meaning assigned it in Section 2.2.

 

“Restated
Charter” means the Company’s Restated Certificate
of Incorporation.

 

“Restated
Bylaws” means the Company’s Amended and Restated
By-laws.

 

“Rights”
has the meaning assigned it in the Preamble.

 

“Rights
Offering” has the meaning assigned it in the
Preamble.

 

“Rights
Shares” means the shares of Common Stock issuable
upon exercise of the Rights.

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities”
means any of a Purchaser’s shares of Common Stock, Non-Voting Stock, Series A
Stock or Warrants, including, without limitation, any securities acquired in
the Rights Offering or otherwise after the date hereof.

 

2

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Series A
Stock” means the Company’s Series A
Convertible Preferred Stock, par value $0.01 per share.

 

“Subscription
Price” has the meaning assigned it in Section 8.1(b) (and
shall be appropriately adjusted for any stock split, combination,
reorganization, recapitalization, reclassification, stock dividends, stock
distribution or similar event occurring prior to the Closing).

 

“Transfer”
has the meaning assigned it in Section 8.3(a).

 

“Voting
Power” means, calculated at a particular point in
time, the aggregate votes represented by all of the then outstanding Common
Stock, Series A Stock and any other securities of the Company then
entitled to vote generally in the election of directors of the Company.

 

“Warrants”
means the Company’s Series 1-A Warrants to
purchase Common Stock and Series 2-A Warrants to purchase Common Stock.

 

Section 2.                    Purchase of
Stock by the Purchasers.

 

2.1                                 Sale and Purchase
of Stock. Pursuant to the terms and subject to the conditions of this
Agreement, the Purchasers, jointly and severally, agree to purchase from the
Company, at the consummation of the Rights Offering (the “Closing”), the shares
of Common Stock (or Non-Voting Stock if required by Section 2.3) not otherwise
subscribed for in the Rights Offering. The Purchasers’ obligations to purchase
the shares of Common Stock (or Non-Voting Stock if required by Section 2.3)
pursuant to this Section 2.1 are conditioned upon the consummation of the
Rights Offering.

 

2.2                                 Redemption of Series A
Stock. Upon consummation of the Rights Offering, the Company shall redeem
all shares of Series A Stock held by the Purchasers (the “Redemption”) as follows:

 

(i)                                     if a Purchaser exercises
its basic subscription privilege in the Rights Offering, such Purchaser shall
deliver such number of shares of Series A Stock with an aggregate
liquidation preference equal to the aggregate Subscription Price of such Rights
Shares, which shall be in full payment of the aggregate Subscription Price;

 

(ii)                                  all Rights Shares not
subscribed for in the Rights Offering shall be delivered to the Purchasers (as
specified in accordance with Section 6.3(a)) in exchange for shares of Series A
Stock with an aggregate liquidation preference equal to the aggregate Subscription
Price of such Rights Shares;

 

(iii)                               for cash in an amount
equal to the aggregate Subscription Price of all Rights Shares subscribed for under
the Rights Offering (other than by a Purchaser in Section 2.2(i)); and

 

3

 

(iv)                              the aggregate
consideration paid in the Redemption pursuant to this Section 2.2 shall
equal the aggregate liquidation preference of all shares of Series A stock,
which is $119,900,700.

 

2.3                                 Form of
Consideration.

 

(i)                                     In delivering
Rights Shares to the Purchasers pursuant to Section 2.2, the Company shall
deliver Non-Voting Stock if the delivery of Common Stock would result in the
Purchasers collectively owning more than 29.9% of the Voting Power of the
Company. The Non-Voting Stock is exchangeable pursuant to Section 8.3(b).

 

(ii)                                  In paying the
Subscription Price, no Purchaser shall be required to pay any form of
consideration except shares of Series A Stock. A Purchaser shall have the
right to designate which shares of Series A Stock are exchanged or
redeemed pursuant to Section 2.2(i), (ii) or (iii).

 

(iii)                               Dividends shall accrue
on the Series A Stock in accordance with its terms, and shall be paid in
cash at the Closing.

 

Section 3.                    Representations
and Warranties of the Purchasers. Each Purchaser hereby severally, and not
jointly, represents and warrants to the Company as follows:

 

3.1                                 Organization. It
(a) is duly organized, validly existing and in good standing under the
laws of the jurisdiction of its organization, (b) is duly qualified or
licensed to do business and is in good standing under the laws of each
jurisdiction where the nature of the property owned or leased by it or the
nature of the business conducted by it makes such qualification or license
necessary, except where the failure to be so qualified or licensed
(individually or in the aggregate) could not reasonably be expected to either
prevent or materially delay its ability to perform its obligations
hereunder, and (c) has all power and authority to carry on its business as
it now is being conducted and to consummate the transactions contemplated by
this Agreement.

 

3.2                                 Due Authorization.
It has the requisite limited liability company or partnership power and
authority to enter into, execute and deliver this Agreement and to perform its
obligations under this Agreement and has taken all necessary limited liability
company or partnership action required for the due authorization, execution,
delivery and performance by it of this Agreement.

 

3.3                                 Due Execution;
Enforceability. This Agreement has been duly and validly executed and
delivered by each Purchaser and constitutes its valid and binding obligation,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
similar laws affecting creditors’ rights and remedies generally and subject, as
to enforceability, to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity).

 

4

 

3.4                                 Consents. Except
for filings, permits, authorizations, consents and approvals as may be
required under, and other applicable requirements of federal securities laws,
applicable state securities or blue sky laws, to the best knowledge of each of
the Purchasers, neither the execution, delivery or performance of this
Agreement by such Purchaser, nor the consummation by it of the obligations and
transactions contemplated by this Agreement requires any consent of,
authorization by, exemption from, filing with, or notice to any governmental
entity or any other Person.

 

3.5                                 No Conflicts. The
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated by this Agreement will not (a) conflict with
or result in any breach of any provision of its certificate or articles of
limited partnership or limited liability company, as the case may be, partnership
agreement, operating agreement or other governing documents, (b) conflict
with or result in the breach of the terms, conditions or provisions of or
constitute a default (or an event which with notice or lapse of time or both
would become a default) under, or give rise to any right of termination,
acceleration or cancellation under, any material agreement, lease, mortgage,
license, indenture, instrument or other contract to which it is a party or by
which any of its properties or assets are bound, or (c) result in a
violation of any law, rule, regulation, order, judgment or decree (including,
without limitation, federal and state securities laws and regulations)
applicable to it or by which any of its properties or assets are bound or
affected, except in the case of clauses (b) or (c), where such conflicts
or violations would not prevent or materially delay its ability to consummate
the transactions contemplated by this Agreement.

 

3.6                                 Investment
Representations and Warranties.

 

(a)          The
shares of Common Stock (or Non-Voting Stock if required by Section 2.3)
being acquired by it hereunder are being acquired for its own account, for the
purpose of investment and not with a view to or for sale in connection with any
public resale or distribution thereof in violation of applicable securities
laws.

 

(b)         It
is an “accredited investor” within the meaning of Rule 501(a) promulgated
under the Securities Act.

 

(c)          It
(i) has been furnished with or has had full access to all of the
information that it considers necessary or appropriate to make an informed
investment decision with respect to the Common Stock (or Non-Voting Stock if
required by Section 2.3) and that it has requested from the Company, (ii) has
had an opportunity to discuss with management of the Company the intended
business and financial affairs of the Company and to obtain information
necessary to verify, any information furnished to it or to which it had access,
and (iii) can bear the economic risk of such investment in the Common
Stock (or Non-Voting Stock if required by Section 2.3), has such knowledge
and experience in business and financial matters so as to enable it to
understand and evaluate the risks of and form an investment decision with
respect to its investment in the Common Stock (or Non-Voting Stock if required
by Section 2.3) and to protect its own interests in connection with such
investment.

 

5

 

(d)         It
has no need for liquidity in its investment in the Common Stock (or Non-Voting
Stock if required by Section 2.3) and is able to bear the economic risk of
its investment in the Common Stock (or Non-Voting Stock if required by Section 2.3)
and the complete loss of all of such investment.

 

(e)          It
understands that the transferability of the Common Stock (or Non-Voting Stock
if required by Section 2.3) is restricted, and that such restrictions will
be reflected in an appropriate legend on the instruments representing the Common
Stock (or Non-Voting Stock if required by Section 2.3).

 

(f)            It
recognizes that an investment in the Company involves certain risks and has
taken full cognizance of, and understands all of, the risks related to the
acquisition of the Common Stock (or Non-Voting Stock if required by Section 2.3).
It further acknowledges and understands that no federal or state agency has
made any recommendation or endorsement of the Common Stock (or Non-Voting Stock
if required by Section 2.3) or any finding or determination as to the
fairness of the investment therein.

 

3.7                                 No Brokers. No
broker’s or finder’s fees or commissions will be payable by any Purchaser with
respect to the transactions contemplated by Section 2, and such Purchaser
hereby indemnifies and holds the Company harmless from any claim, demand or
liability for broker’s or finder’s fees alleged to have been incurred at the
instance of such Purchaser or any Person acting on behalf of or at the request
of such Purchaser.

 

3.8                                 Series A Stock.
Each Purchaser owns, of record and beneficially, the shares of Series A
Stock set forth next to such Purchaser’s name on Schedule 1, free and
clear of any Encumbrances, except those set forth in the documents underlying
the Series A Stock. Upon the Closing, the Company will be vested with good
and valid title to the Series A Stock, free and clear of any Encumbrances
and no Purchaser shall own, of record or beneficially, or have, by conversion,
warrant, option or otherwise, any right to, interest in or agreement to acquire
any Series A Stock.

 

Section 4.                    Representations
and Warranties of the Company. The Company represents and warrants to each
Purchaser as follows:

 

4.1                                 Organization. The
Company (a) is duly organized, validly existing and in good standing under
the laws of the State of Delaware, (b) is duly qualified or licensed to do
business as a foreign corporation and is in good standing under the laws of
each jurisdiction where the nature of the property owned or leased by it or the
nature of the business conducted by it makes such qualification or license
necessary, except where the failure to be so qualified or licensed would not
reasonably be expected to have a material adverse effect, and (c) has all
corporate power and authority to own or lease and operate its assets and carry
on its business as presently being conducted and to consummate the transactions
contemplated by this Agreement.

 

4.2                                 Due Authorization.
The Company has the full corporate power and authority to enter into, execute
and deliver this Agreement and to perform fully its obligations

 

6

 

under this Agreement and has taken all necessary corporate action
required for the due authorization, execution, delivery and performance by it
of this Agreement.

 

4.3                                 Due Execution;
Enforceability. This Agreement has been duly and validly executed and
delivered by the Company and constitutes its valid and binding obligation,
enforceable against it in accordance with its terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and
similar laws affecting creditors’ rights and remedies generally and subject, as
to enforceability, to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity).

 

4.4                                 Consents. Except
for filings, permits, authorizations, consents and approvals as may be
required under, and other applicable requirements of federal securities laws,
applicable state securities or blue sky laws, to the best knowledge of the
Company, neither the execution, delivery or performance of this Agreement by
the Company, nor the consummation by it of the obligations and transactions
contemplated by this Agreement requires any consent of, authorization by,
exemption from, filing with, or notice to any governmental entity or any other
Person.

 

4.5                                 No Conflicts. The
execution, delivery and performance of this Agreement and the consummation of
the transactions contemplated by this Agreement will not (a) conflict with
or result in any breach of any provision of the Restated Charter or Restated
Bylaws, (b) conflict with or result in the breach of the terms, conditions
or provisions of or constitute a default (or an event which with notice or
lapse of time or both would become a default) under, or give rise to any right
of termination, acceleration or cancellation under, any material agreement,
lease, mortgage, license, indenture, instrument or other contract to which it
is a party or by which any of its properties or assets are bound, or (c) result
in a violation of any law, rule, regulation, order, judgment or decree
(including, without limitation, federal and state securities laws and
regulations) applicable to it or by which any of its properties or assets are
bound or affected, except in the case of clauses (b) or (c), where such
conflicts or violations would not prevent or materially delay its ability to
consummate the transactions contemplated by this Agreement.

 

4.6                                 Capitalization.

 

(a)          Immediately
before the Closing, the authorized capital stock of the Company will consist of
(i) 200,000,000 shares of Common Stock; (ii) 100,000,000 shares of
Non-Voting Stock; and (iii) 10,000,000 shares of preferred stock, par
value $0.01 per share, of which 2,000,000 are designated as Series A Stock
and 8,000,000 are undesignated as to series. The Company has no other class of
capital stock authorized, issued or outstanding. The capitalization of the
Company as of the date hereof, including, without limitation, the number of
shares issued and outstanding, the number of shares issuable and reserved for
issuance pursuant to the Company’s stock option plans, the number of shares
issuable and reserved for issuance pursuant to securities exercisable for, or
convertible into or exchangeable for any shares of capital stock, is set forth
on Schedule 4.6(a).

 

7

 

(b)         Except
as contemplated by this Agreement, the Original Investment Agreement, the
Restated Charter and the Warrants, and as set forth on Schedule 4.6(b), as
of the date of this Agreement, (i) there are no outstanding options,
warrants, scrip, dividends, rights to subscribe to, calls or commitments of any
character whatsoever to which the Company is a party relating to, or securities
or rights convertible into or exercisable or exchangeable for, any shares of
capital stock of the Company, or arrangements by which the Company is or may become
bound to issue additional shares of capital stock nor are any such issuances or
arrangements contemplated, (ii) there are no agreements or arrangements
under which the Company is obligated to register the sale of any of its
securities under the Securities Act, and (iii) the Company has no
obligation (contingent or otherwise) to purchase, redeem or otherwise acquire any
of its equity securities or any interests therein or to pay any dividend or
make any distribution in respect thereof. Except as provided in the Original
Investment Agreement, the Restated Charter, the Warrants or as set forth on Schedule 4.6(b),
there are no securities or instruments containing antidilution or similar
provisions that will be triggered by the issuance of the Common Stock (or
Non-Voting Stock if required by Section 2.3) in accordance with the terms
of this Agreement. Except as contemplated by this Agreement, the Original
Investment Agreement, the Restated Charter and the Warrants and as set forth on
Schedule 4.6(b), the Company is not a party to, and has no knowledge of
the existence of, any voting trust or other voting agreement with respect to
any of the securities of the Company or to any agreement relating to the
issuance, sale, redemption, transfer or other disposition of the capital stock
of the Company. To the best of the Company’s knowledge, except as contemplated
by this Agreement, the Original Investment Agreement, the Restated Charter and
the Warrants, no stockholder of the Company has any agreement obligating such
stockholder to transfer shares of the Company.

 

4.7                                 Due Issuance and
Authorization of Capital Stock. All of the outstanding shares of capital
stock of the Company have been, or upon issuance will be, validly issued, fully
paid and nonassessable. Except as contemplated in this Agreement, the Original
Investment Agreement, the Restated Charter and the Warrants, or as disclosed on
Schedule 4.7, no shares of capital stock of the Company are subject to
preemptive rights or any other similar rights of any or all of the stockholders
of the Company and the issuance and delivery of the Common Stock (or Non-Voting
Stock if required by Section 2.3) to the Purchasers pursuant to the terms
hereof will be duly authorized, and such shares will be validly issued, fully
paid and non-assessable, and will vest in the Purchasers legal and valid title
to the Common Stock (or Non-Voting Stock if required by Section 2.3), free
and clear of all Encumbrances and will not be subject to preemptive rights or
other similar rights of any or all of the stockholders of the Company and will
not impose personal liability upon any or all of the Purchasers thereof. The
Company will receive at the Closing an opinion of Skadden, Arps, Slate, Meagher &
Flom LLP with respect to the Common Stock (or Non-Voting Stock if required by Section 2.3)
to be issued at the Closing substantially similar to the opinion to be received
by the Company pursuant to Item 601(b)(5) of Regulation S-K under the
Securities Act in connection with the registration statement relating to the
Rights Offering.

 

4.8                                 Form S-3
Eligibility. The Company is currently eligible under the eligibility requirements
of General Instruction I.B.3 to Registration Statement on Form S-3 to

 

8

 

register the resale of its Common Stock and Non-Voting Stock on a
registration statement on Form S-3 under the Securities Act. To the
knowledge of the Company, there exists no facts or circumstances that would
prohibit or delay the preparation and filing of a registration statement on Form S-3
with respect to the shares of Common Stock and Non-Voting Stock in accordance
with the terms of the registration rights previously granted to the Purchasers
in the Original Investment Agreement. For purposes of the Original Investment
Agreement, the shares of Common Stock and Non-Voting Stock (including shares of
Common Stock into which the shares of Non-Voting Stock may be exchanged in
the future) shall be deemed Purchaser Shares.

 

4.9                                 Board of Directors.
The Board of Directors has declared that the Rights Offering, the Redemption,
this Agreement and the transactions contemplated hereby are advisable and in
the best interests of the Company and its stockholders.

 

Section 5.                    Conditions
Precedent to Obligations of the Company. The obligation of the Company to
proceed with the Closing will be subject to the fulfillment of the following
conditions, any of which may be waived, in whole or in part, by the
Company:

 

5.1                                 No Litigation. No
temporary restraining order or preliminary or permanent injunction or other
order of a court or governmental or regulatory agency of competent jurisdiction
directing that the transactions contemplated in this Agreement not be
consummated will be in effect, and there will be no outstanding threat by any
governmental or regulatory agency of competent jurisdiction to obtain a
temporary restraining order or preliminary or permanent injunction with respect
to the transactions contemplated by this Agreement.

 

5.2                                 Performance. The
Purchasers will have performed in all material respects all of the covenants
and agreements set forth in this Agreement expressly required to be performed
by them at or prior to the Closing, and will have obtained all consents and
approvals required to be obtained by the Purchasers for the consummation of the
transactions contemplated by this Agreement.

 

5.3                                 Deliveries. At
the Closing, each Purchaser will have delivered to the Company the following
items:

 

(a)          a
certificate registered in such Purchaser’s name representing the shares of Series A
Stock held by such Purchaser;

 

(b)         a
duly executed stock power evidencing the transfer of the Series A Stock
from such Purchaser to the Company and in such form satisfactory to the
Company as shall be effective to vest in the Company good and valid title to
the Series A Stock, free and clear of any Encumbrances.

 

Section 6.                    Conditions
Precedent to the Obligations of the Purchasers. The obligations of the
Purchasers to proceed with the Closing will be subject to the fulfillment of
the following conditions, any of which may be waived, in whole or in part,
by the Purchasers:

 

6.1                                 No Litigation. No
temporary restraining order or preliminary or permanent injunction or other
order of a court or governmental or regulatory agency of

 

9

 

competent jurisdiction directing that the transactions contemplated in
this Agreement not be consummated will be in effect, and there will be no
outstanding threat by any governmental or regulatory agency of competent
jurisdiction to obtain a temporary restraining order or preliminary or
permanent injunction with respect to the transactions contemplated by this
Agreement.

 

6.2                                 Performance. The
Company will have performed in all material respects all of the covenants and
agreements set forth in this Agreement expressly required to be performed by it
at or prior to the Closing, and will have obtained all consents and approvals
required to be obtained by the Company for the consummation of the transactions
contemplated by this Agreement.

 

6.3                                 Deliveries. At
the Closing, the Company will have delivered to the Purchasers the following
items:

 

(a)          Stock
Certificates representing the shares of Common Stock (or Non-Voting Stock if
required by Section 2.3) referred to in Section 2.2 (in such
denominations as will be specified in writing by each Purchaser), each of which
will be registered in the applicable Purchaser’s name;

 

(b)         Copies
of resolutions of the Board of Directors, certified by the Secretary of the
Company: (i) approving and authorizing the issuance of the Common Stock
(or Non-Voting Stock if required by Section 2.3) to the Purchasers, (ii) approving
and authorizing the execution, delivery and performance of this Agreement and
all other documents and instruments to be delivered pursuant hereto and
thereto, (iii) determining that the Rights Offering, the Redemption, this
Agreement and the transactions contemplated hereby, are advisable and in the
best interests of the Company and its stockholders, (iv) approving the
Rights Offering, the Redemption, this Agreement and the transactions
contemplated hereby, and (v) approving and authorizing the filing and
distribution of the Rights Offering documents with the SEC and, ultimately, to
the stockholders.

 

Section 7.                    Closing.
The Closing will occur at the offices of Skadden, Arps, Slate, Meagher &
Flom LLP, 4 Times Square, New York, New York 10036, at 9:00 a.m., New York
time, on or before the next Business Day after the satisfaction or waiver of
all of the conditions to the Closing set forth in Section 5 and Section 6
of this Agreement or such other location, date and time as agreed upon by the
Purchasers and the Company (the “Closing Date”). In addition, the parties will
execute and deliver the documents referred to in Section 5 and Section 6
hereof.

 

Section 8.                    Covenants.
The Company and the Purchasers hereby agree to do the following:

 

8.1                                 The Rights Offering.

 

(a)          As
promptly as practicable after the date hereof, the Company will prepare and
file with the SEC a registration statement on Form S-3 (or, if Form S-3
is not then available to the Company, on such form of registration
statement as is then available to effect a registration of securities),
covering the issuance of the Rights and the Rights

 

10

 

Shares. The
Company will not permit any securities other than the Rights and the Rights
Shares to be included in such registration statement. The registration
statement (and each amendment or supplement thereto, and each request for
acceleration of effectiveness thereof) will be provided to the Purchasers and
their counsel prior to its filing with or other submission to the SEC. The
registration statement will comply in all material respects with the provisions
of applicable federal securities laws. The Company promptly will correct any
information provided by it for use in the registration statement if and to the
extent that such information becomes false or misleading in any material
respect, and the Company will take all steps necessary to cause the
registration statement, as so corrected, to be filed with the SEC and to be
disseminated to the distributees of the Rights, in each case as and to the
extent required by applicable federal securities laws. The Purchasers and their
counsel will be given a reasonable opportunity to review and comment upon the
registration statement before it is filed with the SEC. In addition, the
Company will provide the Purchasers and their counsel with any written comments
or other written communications that the Company or its counsel receives from
time to time from the SEC or its staff with respect to the registration statement
promptly after the receipt of such comments or other communications. The
Company will use its best efforts to cause the registration statement to be
filed pursuant to this Section 8.1(a) to be declared effective by the
SEC as soon as possible after the registration statement is filed with the SEC.

 

(b)         Promptly
following the setting of the Subscription Price and the effective date of the
registration statement, the Company will commence the Rights Offering. In the
Rights Offering, the Company will distribute, at no cost to the record holders
of the Common Stock and Non-Voting Stock, one Right for each share of Common
Stock or Non-Voting Stock. Each Right will entitle the holder to purchase, at
the election of the holder thereof, 0.372 shares of Common Stock for a
subscription price of $18.00 per share (the “Subscription Price”). The Rights
Offering will remain open for at least twenty (20) Business Days.

 

(c)          Each
holder of Rights who exercises in full its basic subscription privilege will be
entitled to subscribe for additional Rights Shares at the Subscription Price;
provided that the Purchasers, in order to enhance the Rights Offering for
Company stockholders other than the Purchasers, shall subordinate and not
exercise any oversubscription privileges. If the number of Rights Shares
remaining after the exercise of all basic subscription privileges is not
sufficient to satisfy all oversubscription privileges, the Rights holders will
be allocated Rights Shares pro rata and in proportion to the number of Rights
Shares purchased through the basic subscription privilege. If the pro rata
allocation exceeds the number of Rights Shares requested on the subscription
certificate, then the Rights holder only will receive the number of Rights
Shares requested, and the remaining Rights Shares from such Rights holder’s pro
rata allocation will be divided among other Rights holders exercising their
oversubscription privileges. If the pro rata allocation is less than the number
of Rights Shares requested on the subscription certificate, then the excess
funds paid by that Rights holder as the Subscription Price for the Rights
Shares not issued will be returned without interest or deduction.

 

11

 

(d)         The
closing of the purchase of the oversubscription privilege by each Purchaser
will occur at the time, for the Subscription Price, in the manner, and on the
terms and conditions (other than as modified by this Section 8.1) as set
forth in the Rights Offering.

 

(e)          The
Company will pay all expenses associated with the registration statement
referred to in Section 8.1(a) and the Rights Offering, including,
without limitation, filing and printing fees, fees and expenses of the
subscription agent, counsel and accounting fees and expenses, costs associated
with clearing the Rights and Rights Shares for sale under applicable state
securities laws, listing fees and the Purchasers’ reasonable fees in connection
with the registration including, without limitation, the reasonable attorneys’
fees of counsel to the Purchasers.

 

8.2                                 Amendments to the
Rights of the Purchasers. In order to facilitate the transactions
contemplated in this Agreement:

 

(a)          On
the date of this Agreement:

 

(i)                                     Notwithstanding
anything to the contrary set forth in the Restated Charter and the Warrants,
the Purchasers waive any adjustment to the conversion price of the Series A
Stock and the exercise price of the Warrants pursuant to the anti-dilution
provisions contained in such documents only with respect to (i) shares of Common
Stock (or Non-Voting Stock if required by Section 2.3) issued to the
Purchasers at the Closing; (ii) the Rights (whether or not exercised)
issued to the Purchasers and (iii) the Rights issued to the other
stockholders of the Company which expire unexercised. The exercise price of the
Warrants will be adjusted in accordance with its terms as a result of any other
issuance of Common Stock in the Rights Offering.

 

(ii)                                  Until the earlier to
occur of: (i) the record date for the Rights Offering, or (ii) December 31,
2006, no Purchaser will (x) sell, exchange, pledge, encumber or otherwise
transfer or dispose of, or agree to sell, exchange, pledge, encumber or
otherwise transfer or dispose of, any of its Securities, or any interest
therein, (y) deposit its Securities into a voting trust or enter into a voting
agreement or arrangement with respect to such Securities or grant any proxy
with respect thereto, or (z) enter into any agreement, arrangement, commitment,
understanding or undertaking to do any of the foregoing.

 

(iii)                               Each Purchaser, in its
capacity as a holder of all of the outstanding shares of the Series A
Stock, hereby consents to the Rights Offering for purposes of Section 8.2(c) of
the Original Investment Agreement and waives its piggyback registration rights
thereunder with respect to the Rights Offering.

 

(iv)                              In order to enhance the
Rights Offering for Company stockholders other than the Purchasers, each
Purchaser hereby waives all Rights it would otherwise be entitled to receive
with respect to the Series A Stock or

 

12

 

the Warrants. Such Rights shall be made available to all holders of
Common Stock or Non-Voting Stock.

 

8.3                                 Transfer of
Non-Voting Stock.

 

(a)          Following
the expiration of the restrictions set forth in Section 8.2(b)(ii), if a
Purchaser or any subsequent transferee desires to sell, assign, pledge or
otherwise transfer (each, a “Transfer”) any shares of Non-Voting Stock to any
Person, other than an Affiliate of such Purchaser, which Transfer of Non-Voting
Stock is not the subject of an effective registration statement under the
Securities Act and in accordance with the plan of distribution described in
such registration statement, the holder thereof will give written notice to the
Company of such holder’s intention to effect such Transfer and to comply in all
other respects with this Section 8.3 (“Notice”). Each such Notice shall
describe the manner and circumstances of the proposed Transfer. If within five Business
Days after receipt by the Company of such Notice, the Company requests an
opinion of counsel for such holder that the proposed Transfer may be
effected without registration of such shares of Non-Voting Stock under the
Securities Act, then the Company shall not be required to register such
Transfer, and such holder shall not be entitled to effect such Transfer, unless
and until the Company receives such an opinion of counsel (which counsel and
opinion shall each be reasonably satisfactory to the Company). Such holder
shall thereupon be entitled to Transfer such shares in accordance with the
terms of the Notice delivered by such holder to the Company. Each certificate
representing such Non-Voting Stock issued upon or in connection with such
Transfer shall bear the restrictive legends required by Section 9.6.

 

(b)         Following
the expiration of the restrictions set forth in Section 8.2(b)(ii), if a
Purchaser desires to Transfer any shares of Non-Voting Stock to any Person,
other than an Affiliate of such Purchaser, in an amount not to exceed more than
10% of the Voting Power of the Company and such transferee will not, to the
knowledge of such Purchaser, after giving effect to such Transfer beneficially
own securities representing more than 15% of the Voting Power (a “Disposition”),
then, at the request of such Purchaser, the Company will exchange such shares
of Non-Voting Stock for shares of Common Stock. A Purchaser may also
exchange shares of Non-Voting Stock for shares of Common Stock on a one-for-one
basis (as appropriately adjusted for any stock split, combination,
reorganization, recapitalization, reclassification, stock dividend, stock
distribution or similar event declared or effected after the date of this
Agreement as to either the Common Stock or the Non-Voting Stock) (x) if, after
giving effect to such exchange, the Purchasers collectively will own no more
than 29.9% of the Voting Power of the Company, (y) with respect to shares of
Non-Voting Stock acquired pursuant to this Agreement, after April 2, 2007,
or (z) with respect to shares of Non-Voting Stock acquired pursuant to this
Agreement, in the event that any Person (other than the Purchasers or their
Affiliates) acquires beneficial ownership of 30% or more of the Voting Power of
the Company (each an “Exchange”). In order to effect any such Disposition or
Exchange, such Purchaser will deliver to the Company Notice of such Disposition
or Exchange, and shall otherwise comply with the terms of Section 8.3(a) above.
Upon surrender of certificates representing the shares of Non-Voting Stock that
are being exchanged as part of such Disposition or Exchange, the Company
will issue to

 

13

 

the transferee
or such Purchaser, as the case may be, certificates representing the
appropriate number of shares of Common Stock.

 

8.4                                 Cooperation with
the Rights Offering. Each Purchaser acknowledges that the Company intends
to undertake the Rights Offering, and, in such regard, such Purchaser will, and
will cause its designees on the Company’s Board of Directors to, cooperate with
the Company, subject to their fiduciary duties to the Company, in order to
facilitate the Rights Offering.

 

8.5                                 Further Assurances.
From time to time after the Closing, the parties hereto shall execute,
acknowledge and deliver to the other party such other instruments, documents,
and certificates and will take such other actions as the other party may reasonably
request in order to consummate the transactions contemplated by this Agreement.

 

Section 9.                    Miscellaneous
Notices. Any notice or other communication required or which may be
given pursuant to this Agreement will be in writing and either delivered
personally to the addressee, telecopied to the addressee or mailed, certified
or registered mail, postage prepaid, and will be deemed given when so delivered
personally or telecopied or, if mailed, five (5) days after the date of
mailing, as follows:

 

(i)             if
to the Purchasers, to:

 

c/o Apollo Advisors IV, L.P.

9 West 57th Street

43rd Floor

New York, NY 10019

Attention:  Andrew D. Africk

Facsimile:  (212) 515-3262

 

With a copy to:

 

Akin, Gump, Strauss, Hauer & Feld,
L.L.P. 

590 Madison Avenue

New York, NY 10022

Attention:  Steven M. Pesner, P.C.

Facsimile:  (212) 872-1002

 

(ii)          if
to the Company, to:

 

19 West 44th Street, Suite 507

New York, New York 10036

Attention:  General Counsel

Facsimile: (212) 730-7523

 

14

 

With a copy to:

 

Skadden, Arps, Slate, Meagher &
Flom, LLP

4 Times Square

New York, New York 10036

Attention: Gregory A. Fernicola

Facsimile:  (212) 735-2000

 

9.2                                 Indemnification.
The Company will indemnify, save and hold harmless each and all of the
Purchasers, and each and all of their respective directors, officers,
stockholders, employees, partners, members, managers, representatives,
Affiliates, attorneys and agents and each and all of their respective heirs,
successors, legal administrators and permitted assigns (the “Indemnitees”) from
and against any and all liability, loss, cost, damage, reasonable attorneys’
and accountants’ fees and expenses, court costs and all other out-of-pocket
expenses incurred by any or all of the Indemnitees in connection with or
arising from the execution, delivery and performance by the Company of this
Agreement and the transactions contemplated by this Agreement, except to the
extent of any willful misconduct or gross negligence of the Indemnitees. This
indemnification provision will be in addition to any and all other rights of
each and all of the Indemnitees, including, without limitation, the right to
bring an action against the Company for breach of any term of this Agreement.

 

9.3                                 Fees and Expenses.
The Company will pay and hold each and all of the Purchasers harmless from
liability for the payment of all reasonable legal expenses incurred by each and
all of the Purchasers in connection with the preparation and negotiation of
this Agreement, the other documents referred to in Sections 5, 6 and 8 of this
Agreement, and the consummation of all of the various transactions contemplated
by this Agreement.

 

9.4                                 Survival of
Representations and Warranties etc. All representations and warranties made
in, pursuant to or in connection with this Agreement will survive the execution
and delivery of this Agreement indefinitely, notwithstanding any investigation
at any time made by or on behalf of any party hereto; and all statements
contained in any certificate, instrument or other writing delivered by or on
behalf of any party hereto pursuant to this Agreement or in connection with or
in contemplation of the transactions contemplated by this Agreement will
constitute representations and warranties by such party pursuant to this
Agreement.

 

9.5                                 Assignment. This
Agreement will be binding upon and inure to the benefit of each and all of the
parties to this Agreement and each and all of the other Indemnitees, and
neither this Agreement nor any of the rights, interests or obligations
hereunder will be assigned by any of the parties to this Agreement without the
prior written consent of the other parties. This Agreement can be assigned by
any or all of the Purchasers to any Affiliate of Apollo Management IV, L.P.
over which Apollo Management IV, L.P. or its Affiliates exercises investment
authority, including with respect to voting and dispositive rights; provided,
any such assignee assumes the obligations of the assignor hereunder and agrees
in writing to be bound by the terms of this Agreement in the same manner as the
assignor. Notwithstanding the foregoing, no such assignment shall relieve the
assignor of its obligations hereunder if such assignee fails to perform such
obligations.

 

15

 

9.6                                 Legend. Each
Purchaser agrees with the Company that the certificates evidencing the shares
of Common Stock (or Non-Voting Stock if required by Section 2.3) to be acquired
hereunder will bear the following legends:

 

THE SHARES
REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO TRANSFER AND OTHER RESTRICTIONS
CONTAINED IN AN INVESTMENT AGREEMENT, DATED AS OF MAY 6, 2006 (THE “INVESTMENT
AGREEMENT”), AND ARE OTHERWISE SUBJECT TO THE PROVISIONS OF SUCH INVESTMENT
AGREEMENT.

 

THE SECURITIES
EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND MAY NOT BE SOLD OR TRANSFERRED UNLESS THERE IS AN
EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES OR THE
SECURITIES ARE SOLD AND TRANSFERRED IN A TRANSACTION THAT IS EXEMPT FROM THE
REGISTRATION AND PROSPECTUS DELIVERY REQUIREMENTS OF SUCH ACT.

 

PLEASE BE
ADVISED THAT THESE SHARES ARE HELD BY AN “AFFILIATE” FOR PURPOSES OF RULE 144
PROMULGATED UNDER THE SECURITIES ACT OF 1933, AS AMENDED. THEREFORE, ANY
PROSPECTIVE TRANSFEREE OF THE SHARES EVIDENCED BY THE CERTIFICATE SHOULD OBTAIN
THE NECESSARY OPINION OF COUNSEL PRIOR TO ACQUIRING THESE SHARES.

 

9.7                                 Removal of Legend.
The Securities Act legend endorsed on the certificates pursuant to Section 9.6
hereof will be removed and the Company will issue a certificate without such
legend to the holder thereof at such time as the securities evidenced thereby
cease to be restricted securities upon the earliest to occur of: (i) a
registration statement with respect to the sale of such securities will have
become effective under the Securities Act and such securities will have been
disposed of in accordance with such registration statement, (ii) the
securities will have been sold to the public pursuant to Rule 144 (or any
successor provision) under the Securities Act, or (iii) such securities may be
sold by the holder without restriction or registration under Rule 144(k)
under the Securities Act (or any successor provision).

 

9.8                                 Entire Agreement.
This Agreement (including any schedules to this Agreement) contains the entire
agreement between the Company, on the one hand, and each Purchaser, on the
other hand, with respect to the transactions contemplated by this Agreement and
supersedes all prior agreements and representations, written or oral, with
respect thereto.

 

9.9                                 Waivers and
Amendments. This Agreement may be amended, modified, superseded,
cancelled, renewed or extended, and the terms and conditions of this Agreement may be
waived, only by a written instrument signed by the parties or, in the case of a
waiver, by the party waiving compliance. No delay on the part of any party
in exercising any right, power or privilege pursuant to this Agreement will
operate as a waiver thereof, nor will any waiver on the part of any party
of any right, power or privilege pursuant to this Agreement, nor will any
single or partial exercise of any right, power or privilege pursuant to this
Agreement, preclude any other or further exercise thereof or the exercise of
any other right, power or privilege pursuant to this Agreement. The rights and
remedies provided pursuant to this Agreement are cumulative

 

16

 

and are not exclusive of any rights or remedies which any party
otherwise may have at law or in equity.

 

9.10                           Governing Law;
Jurisdiction; Venue; Process. THIS AGREEMENT WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD
TO ANY CHOICE OF LAW OR CONFLICT OF LAW PROVISION OR RULE THAT WOULD CAUSE
THE APPLICATION OF THE LAWS OF ANY JURISDICTION OTHER THAN THE STATE OF NEW
YORK. Any legal or equitable action or proceeding arising out of or in
connection with this Agreement or in any certificate, report or other
instrument delivered under or pursuant to any term of this Agreement will be
brought in the courts of the State of New York, in the County and City of New York
or of the United States District Court for the Southern District of New York,
and by execution and delivery of this Agreement, each of the parties hereby
irrevocably accepts for itself and in respect of its property, generally and
unconditionally, the exclusive jurisdiction of the aforesaid courts. Each of
the parties hereby irrevocably waives any objection which it may now or
hereafter have to laying of jurisdiction or venue of any actions or proceedings
arising out of or in connection with this Agreement or in any certificate,
report or other instrument delivered under or pursuant to any term of this
Agreement brought in the courts referred to above and hereby further
irrevocably waive and agree, not to plead or claim in any such court that any
such action or proceeding has been brought in an inconvenient forum. Each of
the parties further agrees that the mailing by certified or registered mail,
return receipt requested, of any process required by any such court will
constitute valid and lawful service of process against it, without necessity
for service by any other means provided by statute or rule of court.

 

9.11                           Counterparts. This
Agreement may be executed in two or more counterparts, each of which will
be deemed an original but all of which together will constitute one and the
same instrument. All such counterparts will be deemed an original, will be
construed together and will constitute one and the same instrument.

 

9.12                           Headings. The
headings in this Agreement are for reference purposes only and will not in any
way affect the meaning or interpretation of this Agreement.

 

[Execution Page Follows]

 

17

 

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

 

	
   

  	
  SKYTERRA
  COMMUNICATIONS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey
  A. Leddy

  	
   

  
	
   

  	
   

  	
  Name:  Jeffrey
  A. Leddy

  	
   

  
	
   

  	
   

  	
  Title:  Chief
  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  APOLLO
  INVESTMENT FUND IV, L.P.

  	
   

  
	
   

  	
  By: APOLLO
  ADVISORS IV, L.P.

  	
   

  
	
   

  	
   

  	
  its general
  partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Apollo Capital
  Management IV, Inc.

  	
   

  
	
   

  	
   

  	
  its general
  partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  D. Africk

  	
   

  
	
   

  	
   

  	
  Name: Andrew
  D. Africk

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  APOLLO
  OVERSEAS PARTNERS IV, L.P.

  	
   

  
	
   

  	
  By:

  	
  APOLLO
  ADVISORS IV, L.P.

  	
   

  
	
   

  	
   

  	
  its managing
  general partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Apollo
  Capital Management IV, Inc.

  	
   

  
	
   

  	
   

  	
  its general
  partner

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  D. Africk

  	
   

  
	
   

  	
   

  	
  Name: Andrew
  D. Africk

  	
   

  
	
   

  	
   

  	
  Title: Vice
  President

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  AIF IV/RRRR
  LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  D. Africk

  	
   

  
	
   

  	
   

  	
  Name: Andrew
  D. Africk

  	
   

  
	
   

  	
   

  	
  Title:
  Manager

  	
   

  
								

 

18

 

	
   

  	
  AP/RM
  ACQUISITION LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  D. Africk

  	
   

  
	
   

  	
   

  	
  Name: Andrew
  D. Africk

  	
   

  
	
   

  	
   

  	
  Title:  Manager

  	
   

  
					

 

 

	
   

  	
  ST/RRRR LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  D. Africk

  	
   

  
	
   

  	
   

  	
  Name: Andrew
  D. Africk

  	
   

  
	
   

  	
   

  	
  Title:  Manager

  	
   

  
					

 

19

 

SCHEDULE 1

 

	
  Purchaser

  	
   

  	
  Number of Shares of Series

  A Stock being Sold

  	
   

  
	
  Apollo Investment Fund IV, L.P.

  	
   

  	
  918,261

  	
   

  
	
  Apollo Overseas Partners IV, L.P.

  	
   

  	
  49,238

  	
   

  
	
  AIF IV/RRRR LLC

  	
   

  	
  231,509

  	
   

  
	
  TOTAL

  	
   

  	
  1,199,008

  	
   

  

 

20Exhibit 10.2

 

EXCHANGE AGREEMENT

 

BY AND AMONG

 

MOTIENT CORPORATION,

 

MOTIENT VENTURES HOLDING
INC.,

 

AND

 

SKYTERRA COMMUNICATIONS, INC.

 

Dated as of May 6, 2006

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE I

  	
   

  
	
   

  	
   

  
	
  PURCHASE AND
  SALE

  	
   

  
	
   

  	
   

  
	
  Section 1.1

  	
  Sale of MSV Interests and SkyTerra Shares

  	
  1

  
	
  Section 1.2

  	
  Initial Closing

  	
  1

  
	
  Section 1.3

  	
  Deliveries

  	
  1

  
	
  Section 1.4

  	
  Sale of Retained MSV Interests and
  Additional SkyTerra Shares

  	
  4

  
	
  Section 1.5

  	
  Subsequent Closings

  	
  4

  
	
  Section 1.6

  	
  Subsequent Deliveries

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  
	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES OF MOTIENT AND SUB

  	
   

  
	
   

  	
   

  
	
  Section 2.1

  	
  Corporate Organization; Related Entities

  	
  5

  
	
  Section 2.2

  	
  Title to MSV Interests and Retained MSV
  Interests

  	
  5

  
	
  Section 2.3

  	
  Authority Relative to this Agreement

  	
  6

  
	
  Section 2.4

  	
  Consents and Approvals; No Violations

  	
  6

  
	
  Section 2.5

  	
  Purchase Entirely for Own Account

  	
  7

  
	
  Section 2.6

  	
  Reliance Upon Motient’s Representations

  	
  8

  
	
  Section 2.7

  	
  Receipt of Information

  	
  8

  
	
  Section 2.8

  	
  Investor Status; etc.

  	
  8

  
	
  Section 2.9

  	
  Liens for Taxes

  	
  8

  
	
  Section 2.10

  	
  Brokers or Finders

  	
  8

  
	
  Section 2.11

  	
  Restricted Securities

  	
  8

  
	
  Section 2.12

  	
  Legends

  	
  9

  
	
  Section 2.13

  	
  Distribution Registration Statement and
  Preferred Registration Statement

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  
	
   

  	
   

  
	
  REPRESENTATIONS
  AND WARRANTIES OF SKYTERRA

  	
   

  
	
   

  	
   

  
	
  Section 3.1

  	
  Corporate Organization; Related Entities

  	
  9

  
	
  Section 3.2

  	
  Capitalization

  	
  10

  
	
  Section 3.3

  	
  Authority Relative to this Agreement and
  the Registration Rights Agreement

  	
  11

  
	
  Section 3.4

  	
  Consents and Approvals; No Violations

  	
  11

  
	
  Section 3.5

  	
  Reports and Financial Statements

  	
  11

  
	
  Section 3.6

  	
  Absence of Certain Changes or Events

  	
  12

  
	
  Section 3.7

  	
  Litigation

  	
  13

  
	
  Section 3.8

  	
  Compliance with Law

  	
  13

  
	
  Section 3.9

  	
  Absence of Undisclosed Liabilities

  	
  13

  

 

i

 

	
  Section 3.10

  	
  No Default

  	
  13

  
	
  Section 3.11

  	
  Taxes

  	
  14

  
	
  Section 3.12

  	
  Intellectual Property

  	
  14

  
	
  Section 3.13

  	
  Permits

  	
  15

  
	
  Section 3.14

  	
  Brokers

  	
  15

  
	
  Section 3.15

  	
  Contracts

  	
  15

  
	
  Section 3.16

  	
  Insurance

  	
  16

  
	
  Section 3.17

  	
  Ownership of MSV LP Units and MSV GP Shares

  	
  16

  
	
  Section 3.18

  	
  Purchase Entirely for Own Account

  	
  16

  
	
  Section 3.19

  	
  Reliance Upon SkyTerra’s Representations

  	
  16

  
	
  Section 3.20

  	
  Receipt of Information

  	
  16

  
	
  Section 3.21

  	
  Investor Status; etc.

  	
  16

  
	
  Section 3.22

  	
  Restricted Securities

  	
  17

  
	
  Section 3.23

  	
  Distribution Registration Statement and the
  Preferred Registration Statement

  	
  17

  
	
  Section 3.24

  	
  Issuances Exempt

  	
  17

  
	
  Section 3.25

  	
  No Integrated Offering

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  
	
   

  	
   

  
	
  ADDITIONAL
  AGREEMENTS

  	
   

  
	
   

  	
   

  
	
  Section 4.1

  	
  HSR Act and FCC Approval

  	
  18

  
	
  Section 4.2

  	
  Blue Sky Laws

  	
  18

  
	
  Section 4.3

  	
  Compliance with MSV Documents

  	
  19

  
	
  Section 4.4

  	
  No Transfers; No Alternative Transactions;
  Standstill

  	
  20

  
	
  Section 4.5

  	
  Distribution Registration Statement and
  Preferred Registration Statement

  	
  21

  
	
  Section 4.6

  	
  Commercially Reasonable Efforts

  	
  22

  
	
  Section 4.7

  	
  Exchange of SkyTerra Non-Voting Common
  Stock for SkyTerra Common Stock

  	
  22

  
	
  Section 4.8

  	
  Motient Dividend

  	
  23

  
	
  Section 4.9

  	
  Public Announcements

  	
  23

  
	
  Section 4.10

  	
  Prohibited Actions; Appropriate Adjustments

  	
  23

  
	
  Section 4.11

  	
  Tag Along Rights

  	
  25

  
	
  Section 4.12

  	
  Subsequent TerreStar Tag-Along Rights

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  
	
   

  	
   

  
	
  CONDITIONS
  TO INITIAL CLOSING OF SKYTERRA

  	
   

  
	
   

  	
   

  
	
  Section 5.1

  	
  Representations and Warranties

  	
  26

  
	
  Section 5.2

  	
  Performance

  	
  26

  
	
  Section 5.3

  	
  Registration Rights Agreement

  	
  26

  
	
  Section 5.4

  	
  Opinion of Motient’s Counsel

  	
  27

  
	
  Section 5.5

  	
  Certificates and Documents

  	
  27

  
	
  Section 5.6

  	
  Compliance Certificate

  	
  27

  
	
  Section 5.7

  	
  Final Order of FCC

  	
  27

  

 

ii

 

	
  Section 5.8

  	
  HSR Approval

  	
  27

  
	
  Section 5.9

  	
  Intentionally Omitted

  	
  27

  
	
  Section 5.10

  	
  Effective Registration Statements

  	
  27

  
	
  Section 5.11

  	
  MSV Investors, LLC and other MSV Members

  	
  27

  
	
  Section 5.12

  	
  Intentionally Omitted

  	
  27

  
	
  Section 5.13

  	
  Exchange of SkyTerra Non-Voting Common
  Stock

  	
  27

  
	
  Section 5.14

  	
  FIRPTA Certificate

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  
	
   

  	
   

  
	
  CONDITIONS
  TO INITIAL CLOSING OF MOTIENT AND SUB

  	
   

  
	
   

  	
   

  
	
  Section 6.1

  	
  Representations and Warranties

  	
  28

  
	
  Section 6.2

  	
  Performance

  	
  28

  
	
  Section 6.3

  	
  Registration Rights Agreement

  	
  28

  
	
  Section 6.4

  	
  Opinion of Company’s Counsel

  	
  28

  
	
  Section 6.5

  	
  Certificates and Documents

  	
  28

  
	
  Section 6.6

  	
  Compliance Certificate

  	
  28

  
	
  Section 6.7

  	
  Rights Offering and Conversion of SkyTerra
  Preferred Stock

  	
  28

  
	
  Section 6.8

  	
  FCC Approval

  	
  28

  
	
  Section 6.9

  	
  HSR Approval

  	
  28

  
	
  Section 6.10

  	
  Effective Registration Statements

  	
  29

  
	
  Section 6.11

  	
  MSV Investors, LLC and other MSV member

  	
  29

  
	
  Section 6.12

  	
  Intentionally Omitted

  	
  29

  
	
  Section 6.13

  	
  Board of Directors

  	
  29

  
	
  Section 6.14

  	
  Intentionally Omitted

  	
  29

  
	
  Section 6.15

  	
  Cash Balance

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  
	
   

  	
   

  
	
  RETAINED MSV
  INTERESTS

  	
   

  
	
   

  	
   

  
	
  Section 7.1

  	
  Option

  	
  29

  
	
  Section 7.2

  	
  Exercise and Closing of Option

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  
	
   

  	
   

  
	
  INDEMNIFICATION

  	
   

  
	
   

  	
   

  
	
  Section 8.1

  	
  Survival of Representations and Warranties

  	
  31

  
	
  Section 8.2

  	
  Obligation to Indemnify

  	
  31

  
	
  Section 8.3

  	
  Indemnification Procedures

  	
  32

  
	
  Section 8.4

  	
  Notices and Payments

  	
  33

  
	
  Section 8.5

  	
  Limited Remedy

  	
  33

  

 

iii

 

	
  ARTICLE IX

  	
   

  
	
   

  	
   

  
	
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  
	
  Section 9.1

  	
  Termination

  	
  34

  
	
  Section 9.2

  	
  Survival

  	
  35

  
	
  Section 9.3

  	
  Expenses

  	
  35

  
	
  Section 9.4

  	
  Counterparts; Effectiveness

  	
  35

  
	
  Section 9.5

  	
  Governing Law

  	
  35

  
	
  Section 9.6

  	
  Notices

  	
  35

  
	
  Section 9.7

  	
  Assignment; Binding Effect

  	
  36

  
	
  Section 9.8

  	
  Severability

  	
  36

  
	
  Section 9.9

  	
  Entire Agreement; Non-Assignability;
  Parties in Interest

  	
  36

  
	
  Section 9.10

  	
  Headings

  	
  36

  
	
  Section 9.11

  	
  Certain Definitions

  	
  37

  
	
  Section 9.12

  	
  Amendments and Waivers

  	
  37

  
	
  Section 9.13

  	
  Specific Performance

  	
  37

  
	
  Section 9.14

  	
  Exclusive Jurisdiction

  	
  37

  
	
  Section 9.15

  	
  Waiver of Jury Trial

  	
  37

  
	
   

  	
   

  	
   

  
	
  Schedule A

  	
  SkyTerra and Motient Disclosure Schedules

  	
   

  
	
  Schedule B

  	
  Transaction Exchange Agreements

  	
   

  
	
  Exhibit A

  	
  Form of Amendment No. 2 to the
  TerreStar Networks Inc. Stockholders’ Agreement

  	
   

  
	
  Exhibit B

  	
  Form of Amended and Restated TerreStar
  Networks Inc. Stockholders’ Agreement

  	
   

  
	
  Exhibit C

  	
  Form of Amendment No. 3 to the
  Amended and Restated Stockholders’ Agreement of Mobile Satellite Ventures GP, Inc.

  	
   

  
	
  Exhibit D

  	
  Form of Registration Rights Agreement

  	
   

  
	
  Exhibit E

  	
  Form of Legal Opinion of Counsel to
  Motient

  	
   

  
	
  Exhibit F

  	
  Form of Legal Opinion of Counsel to
  SkyTerra

  	
   

  

 

iv

 

EXCHANGE
AGREEMENT

 

THIS EXCHANGE AGREEMENT
(this “Agreement”) is made and
entered into as of May 6, 2006 by and among Motient Corporation, a
Delaware corporation (“Motient”), Motient
Ventures Holding Inc., a Delaware corporation and indirect, wholly-owned
subsidiary of Motient (“Sub”), and
SkyTerra Communications, Inc., a Delaware corporation (“SkyTerra”).

 

ARTICLE I

 

PURCHASE AND SALE

 

Section 1.1                                      Sale
of MSV Interests and SkyTerra Shares. Subject to the terms and conditions
hereof and in reliance upon the representations, warranties and agreements
contained herein, at the Initial Closing (as defined below), SkyTerra will
purchase from Sub, and Motient shall cause Sub to sell to SkyTerra, 9,034,848.51
limited partnership units (the “MSV LP Units”) of
Mobile Satellite Ventures, L.P. (“MSV”) and 1,572.11
shares of common stock (the “MSV GP Shares”
and, together with the MSV LP Units, the “MSV Interests”) of Mobile Satellite Ventures
GP, Inc. (“MSV GP”) owned by Motient and
its subsidiaries, in exchange for 25,478,273 shares (the “SkyTerra Shares”) of non-voting common stock, par value
$0.01 per share (“SkyTerra Non-Voting Common Stock”),
of SkyTerra exchangeable in certain circumstances for an equal number of shares
of SkyTerra Common Stock (as defined below), in each case as appropriately
adjusted for any stock split, combination, reorganization, recapitalization,
reclassification, stock dividend, stock distribution or similar event declared
or effected prior to the Initial Closing; provided, that no adjustment
shall be made for the Rights Offering (as defined below).

 

Section 1.2                                      Initial
Closing. The closing (the “Initial Closing”)
of the purchase and sale of the MSV Interests in exchange for the SkyTerra
Shares shall be held at the offices of Andrews Kurth LLP, 450 Lexington Avenue,
New York, New York on the first business day immediately following the day on
which the last to be fulfilled or waived of the conditions set forth in
Articles V and VI (other than those conditions that by their nature are to be
satisfied at the Initial Closing, but subject to fulfillment or waiver of those
conditions), shall be fulfilled or waived in accordance herewith; or (b) at
such other time, date or place as Motient and SkyTerra may agree in
writing. The date on which the Initial Closing occurs is hereinafter referred
to as the “Initial
Closing Date.”

 

Section 1.3                                      Deliveries.

 

(a)                                  Simultaneously with the execution of
this Agreement, Sub and MSV Investors, LLC shall execute and deliver (i) Amendment
No. 2 to the TerreStar Networks Inc. Stockholders’ Agreement in the form attached
as Exhibit A hereto, (ii) the Amended and Restated TerreStar
Networks Inc. Stockholders’ Agreement in the form attached as Exhibit B
hereto (the “Amended TerreStar Stockholders’ Agreement”),
both (i) and (ii) to be effective in accordance with their terms, (iii) a
waiver of its rights pursuant to Section 8.2(b) of the TerreStar
Networks, Inc. Stockholders’ Agreement, as currently in effect; provided,
that such waiver shall not apply to its rights pursuant to Section 4.12
hereof and (iv) Amendment No. 3 to the Amended

 

 

and Restated
Stockholders Agreement of Mobile Satellite Ventures GP, Inc. in the form attached
as Exhibit C hereto.

 

(b)                                 At the Initial Closing, Motient
and/or Sub shall deliver to SkyTerra (unless waived by SkyTerra) the following
(collectively, the “Motient Initial Closing
Deliveries”):

 

(i)             certificates registered in Sub’s
name representing the MSV Interests;

 

(ii)          a duly executed stock power
evidencing the transfer of the MSV Interests from Sub to SkyTerra and in such form satisfactory
to SkyTerra as shall be effective to vest in SkyTerra good and valid title to
the MSV Interests, free and clear of any Lien (as defined below) other than
Securities Law Encumbrances (as defined below) or pursuant to the MSV Documents
(as defined below);

 

(iii)       the Registration Rights Agreement in
the form attached as Exhibit D hereto (the “Registration Rights Agreement”) duly
executed by Motient;

 

(iv)      certified resolutions of the Board
of Directors of Motient and Sub approving this Agreement, the Registration
Rights Agreement and the transactions contemplated hereby;

 

(v)         a certificate of good standing for
each of Motient and Sub from the Secretary of State of the State of Delaware;

 

(vi)      an affidavit certifying as to Sub’s
non-foreign status in accordance with the requirements of Section 1.1445-2(b) of
the Internal Revenue Service Treasury Regulations; and

 

(vii)   the amendments to the MSV LP
Agreement and MSV GP Stockholders Agreement described in Section 4.4(b) hereto
duly executed by Sub.

 

(c)                                  At the Initial Closing, SkyTerra
shall deliver to Motient and Sub (unless waived by Motient) the following
(collectively, the “SkyTerra Initial Closing
Deliveries”):

 

(i)             a certificate registered in Motient’s
name representing the SkyTerra Shares;

 

(ii)          an effective registration statement
(the “Distribution Registration Statement”)
with respect to the shares of SkyTerra Common Stock (following the exchange of
SkyTerra Shares pursuant to Section 4.7) that are to be distributed by Motient
to the holders of Motient Common Stock (the “Motient

 

2

 

Common Stockholders”) and the SkyTerra Shares delivered to Motient at the
Initial Closing pursuant to Section 2.5(i);

 

(iii)       an effective registration statement
(the “Preferred Registration Statement”)
with respect to the shares of SkyTerra Common Stock (following the exchange of
SkyTerra Shares pursuant to Section 4.7) that are to be distributed by
Motient to the holders (the “Motient Preferred Stockholders”)
of Motient’s Series A Cumulative Convertible Preferred Stock (the “Motient Series A Preferred”) and Motient’s Series B
Cumulative Convertible Preferred Stock (the “Motient
Series B Preferred” and, together with the Motient Series A
Preferred, the “Motient Preferred Stock”)
upon the conversion of such shares of Motient Preferred Stock into shares of
Motient’s common stock, par value $0.01 per share (“Motient
Common Stock”) and the Additional SkyTerra Shares delivered to
Motient at the subsequent Closing pursuant to Section 2.5(A);

 

(iv)      the Registration Rights Agreement
duly executed by SkyTerra;

 

(v)         a draft copy of SkyTerra’s
registration statement registering the resale by Motient of 14,407,343 shares
of SkyTerra Common Stock (following the exchange of SkyTerra Shares pursuant to
Section 4.7), as appropriately adjusted for any stock split, combination,
reorganization, recapitalization, reclassification, stock dividend, stock
distribution or similar event, in form and substance substantially as
required by the rules and regulations of the SEC; provided, however,
that no adjustment shall be made for the distribution to holders of SkyTerra
common stock and certain warrants and options contemplated by the Rights
Offering;

 

(vi)    certified
resolutions of SkyTerra’s Board of Directors approving this Agreement, the
Registration Rights Agreement and the transactions contemplated hereby;

 

(vii)    a
certificate of good standing for SkyTerra from the Secretary of State of the
State of Delaware; and

 

(viii)    the
amendments to the MSV LP Agreement and MSV GP Stockholders Agreement described
in Section 4.4(b) hereto duly executed by MSV Investors, LLC.

 

3

 

Section 1.4                                      Sale
of Retained MSV Interests and Additional SkyTerra Shares. Subject to the
terms and conditions of Article VII, if the options described in Section 7.1
are exercised, at each Subsequent Closing, Motient will purchase from SkyTerra,
and SkyTerra shall issue and sell to Motient, all or a portion of an aggregate
of 18,855,144 additional shares (the “Additional
SkyTerra Shares”) of SkyTerra Non-Voting Common Stock,
exchangeable in certain circumstances for an equal number of shares of SkyTerra
Common Stock, as appropriately adjusted for any stock split, combination,
reorganization, recapitalization, reclassification, stock dividend, stock
distribution or similar event declared or effected prior to the applicable
Subsequent Closing (as defined below); provided, however, that no
adjustment shall be made for the distribution to holders of SkyTerra common
stock and certain warrants and options contemplated by the Rights Offering; and
SkyTerra will purchase from Sub, and Motient shall cause Sub to sell to
SkyTerra, the corresponding portion (or all) of an aggregate of 6,686,221.50
additional MSV LP Units owned by Motient and its subsidiaries (the “Retained MSV Interests”), as appropriately adjusted for
any stock split, combination, reorganization, recapitalization,
reclassification, stock dividend, stock distribution or similar event declared
or effected prior to the applicable Subsequent Closing; provided, however,
that no adjustment shall be made for the distribution to holders of SkyTerra
common stock and certain warrants and options contemplated by the Rights
Offering. Except for a Subsequent Closing in connection with a SkyTerra Change
of Control (as defined below) in which all remaining Additional SkyTerra Shares
and Retained MSV Interests will be exchanged, the portion of the Additional
SkyTerra Shares and the corresponding portion of the Retained MSV Interests to
be exchanged at any Subsequent Closing shall be determined by Motient but in no
event will the Additional SkyTerra Shares or Retained MSV Interests exchanged
at such Subsequent Closing (when combined with the Additional SkyTerra Shares
and Retained MSV Interests exchanged at all prior Subsequent Closings) exceed
the aggregate amount of the Additional SkyTerra Shares or Retained MSV
Interests, as applicable, as of the date of this Agreement. At each Subsequent
Closing, the portion of the Additional SkyTerra Shares to be issued for the
corresponding portion of the Retained MSV Interests to be exchanged at such
Subsequent Closing shall be determined on the basis of the Subsequent Closing
Exchange Ratio. The “Subsequent Closing Exchange Ratio”
shall equal 2.82 Additional SkyTerra Shares for one MSV LP Unit, in each case
as appropriately adjusted for any stock split, combination, reorganization,
recapitalization, reclassification, stock dividend, stock distribution or
similar event declared or effected prior to the applicable Subsequent Closing; provided,
however, that no adjustment shall be made for the distribution to
holders of SkyTerra common stock and certain warrants and options contemplated
by the distribution to holders of SkyTerra common stock and certain warrants of
non-transferable subscription rights (the “Rights
Offering”) to acquire an aggregate of 6,661,150 shares of
SkyTerra Common Stock, or in the case of certain stockholders, SkyTerra
Non-Voting Common Stock, at a price of $18.00 per share, as appropriately
adjusted for any stock split, combination, reorganization, recapitalization,
reclassification, stock dividend, stock distribution or similar event declared
or effected prior to the consummation of such Rights Offering.

 

Section 1.5                                   Subsequent
Closings. Each closing (each, a “Subsequent
Closing,” and, together with the Initial Closing, each, a “Closing” and collectively, the “Closings”)
of the purchase and sale of Retained MSV Interests in exchange for Additional
SkyTerra Shares shall be held at the offices of Andrews Kurth LLP, 450
Lexington Avenue, New York, New York on the applicable Subsequent Closing Date.

 

4

 

Section 1.6                                      Subsequent
Deliveries. At each Subsequent Closing:

 

(a)                                  Motient and/or Sub shall deliver to
SkyTerra (unless waived by SkyTerra) the following (collectively, the “Motient Subsequent Closing Deliveries”):

 

(i)             certificates registered in Sub’s
name representing the portion of the Retained MSV Interests to be sold at such
Subsequent Closing; and

 

(ii)          a duly executed stock power
evidencing the transfer of the portion of the Retained MSV Interests to be
transferred at such Subsequent Closing from Sub to SkyTerra and in such form satisfactory
to SkyTerra as shall be effective to vest in SkyTerra good and valid title to
such Retained MSV Interests, free and clear of any Lien other than Securities
Law Encumbrances (as defined below) or pursuant to the MSV Documents (as defined
below).

 

(b)                                 SkyTerra shall deliver to Motient
and Sub (unless waived by Motient) the following (the “SkyTerra
Subsequent Closing Delivery”), a certificate registered in
Motient’s name representing the number of the Additional SkyTerra Shares to be issued
at such Subsequent Closing.

 

ARTICLE II

REPRESENTATIONS AND WARRANTIES OF MOTIENT AND SUB

 

Motient and Sub, jointly and severally, represent and warrant to
SkyTerra, as follows:

 

Section 2.1                                      Corporate
Organization; Related Entities. Each of Motient and Sub are corporations
duly organized, validly existing and in good standing under the laws of the
State of Delaware and both Motient and Sub have the requisite corporate power
and authority to own or lease their respective properties and to carry on their
respective businesses as they are presently being conducted. Each of Motient
and Sub is duly qualified to do business as a foreign corporation, and is in
good standing, in each jurisdiction in which the ownership of their respective
properties or the conduct of their respective business requires such
qualification, except for failures, if any, to be so qualified which
individually or in the aggregate have not had and could not reasonably be
expected to have a Motient Material Adverse Effect. The copies of the
certificates of incorporation and bylaws of Motient and Sub heretofore made
available to SkyTerra are complete and current copies of such instruments as
presently in effect. A “Motient Material Adverse Effect”
means a material adverse effect respecting the ability of Motient to consummate
the transactions contemplated by this Agreement or fulfill the conditions to
Closing set forth herein, except to the extent that such adverse effect results
from (i) general economic, regulatory or political conditions or changes
therein in the United States or the other countries in which such party
operates; (ii) financial or securities market fluctuations or conditions;
or (iii) changes in, or events or conditions affecting, the wireless
telecommunications industry generally.

 

Section 2.2                                      Title
to MSV Interests and Retained MSV Interests. As of the date hereof and at
all times until and including at the Initial Closing, Sub owns, of record and
beneficially, the MSV Interests and Retained MSV Interests free and clear of
any and all option,

 

5

 

call, contract, commitment, mortgage, pledge, security interest,
encumbrance, lien, Tax, claim or charge of any kind or right of others of
whatever nature (collectively, a “Lien”) of any
kind, other than pursuant to applicable securities laws (“Securities Law Encumbrances”) or the MSV Documents
(defined below), other than the MSV Interests or the number of Retained MSV
Interests previously transferred to SkyTerra at the Initial Closing or a prior
Subsequent Closing. Upon the Initial Closing, (x) SkyTerra shall be vested with
good and valid title to the MSV Interests, free and clear of any Liens of any
kind (other than Securities Law Encumbrances or the MSV Documents) and (y)
neither Motient nor Sub shall own, of record or beneficially, or have, by
conversion, warrant, option or otherwise, any right to, interest in or
agreement to acquire any MSV LP Units or MSV GP Shares other than the Retained
MSV Interests and its indirect ownership of MSV LP Units and MSV GP Shares due
to its ownership of shares of common stock of Spectrum Space IV Managers, Inc.,
Spectrum Space IV Parallel, Inc., Spectrum Space Equity Investors IV, Inc.,
Columbia Space (QP), Inc., Columbia Space (AI), Inc. and Columbia
Space Partners, Inc. (collectively, the “Columbia/Spectrum Blocker Corporations”)  Upon consummation of each Subsequent Closing,
SkyTerra shall be vested with good and valid title to the portion of the
Retained MSV Interests to be transferred at such Subsequent Closing, free and
clear of any Liens of any kind (other than Securities Law Encumbrances or the
MSV Documents). Upon consummation of the final Subsequent Closing, neither
Motient nor Sub shall own, of record or beneficially, or have, by conversion,
warrant, option or otherwise, any right to, interest in or agreement to acquire
any MSV LP Units or MSV GP Shares. The “MSV
Documents” means the Amended and Restated Limited Partnership
Agreement dated as of November 12, 2004, the Amended and Restated
Stockholders’ Agreement dated as of November 12, 2004, the Voting
Agreement dated as of November 12, 2004, the bylaws of MSV GP and the
Second Amended and Restated Parent Transfer/Drag Along Agreement dated as of November 12,
2004, as the same may be amended from time to time.

 

Section 2.3                                      Authority
Relative to this Agreement. Each of Motient and Sub has the requisite
corporate power and authority to execute and deliver this Agreement, the
Registration Rights Agreement and the Amended TerreStar Stockholders’
Agreement, as applicable, and to consummate the transactions contemplated
hereby. The execution and delivery of this Agreement, the Registration Rights
Agreement and the Amended TerreStar Stockholders’ Agreement by Motient and Sub,
as applicable, and the consummation by Motient and Sub of the transactions
contemplated hereby and thereby have been duly authorized by Motient’s and Sub’s
respective board of directors, and no other corporate or stockholder
proceedings on the part of Motient or Sub are necessary to authorize this
Agreement, the Registration Rights Agreement and the Amended TerreStar
Stockholders’ Agreement, as applicable, or for Motient or Sub to consummate the
transactions contemplated hereby or thereby. This Agreement, the Registration
Rights Agreement and the Amended TerreStar Stockholders’ Agreement, have been
duly and validly executed and delivered by Motient and Sub, as applicable, and,
assuming the due authorization, execution and delivery thereof by SkyTerra,
constitutes the valid and binding obligations of Motient and Sub, enforceable
against them in accordance with its terms.

 

Section 2.4                                      Consents
and Approvals; No Violations. Other than as set forth on Schedule 2.4
of Motient’s disclosure schedule, except in connection with or in order to
comply with the applicable provisions of (a) the Hart-Scott-Rodino
Antitrust Improvements Act of 1976 (the “HSR
Act”) and, if necessary, similar foreign competition or
Antitrust Laws, (b) the filing of

 

6

 

the Distribution Registration Statement, the Preferred Registration
Statement or pursuant to the Registration Rights Agreement, under the
Securities Act of 1933, as amended (the “Securities
Act”), (c) filings or approvals required under state
securities or “blue sky” laws, (d) the Communications Act of 1934, as
amended, and the rules, regulations or policies of the Federal Communications
Commission and any successor thereto (“FCC”)
(collectively, the “Communications Laws”)
and (e) the right of first refusal provisions (the “MSV ROFR”) or the tag-along provisions (the “MSV Tag-Along”) of
Sections 8.2(a) or (b) of the Amended and Restated Stockholders’
Agreement (the “MSV GP
Stockholders Agreement”) of MSV GP, dated as of November 12,
2004, neither the execution and delivery of this Agreement, nor the
consummation of the transactions contemplated hereby, will conflict with, or
result in any violation of, or default under (with or without notice or lapse
of time, or both), or give rise to a right of termination, cancellation or
acceleration of any obligation or loss of a benefit under (i) any
provision of the organizational documents of Motient or Sub, (ii) any
material mortgage, indenture, lease, contract or other agreement or instrument,
permit, concession, franchise, license, judgment, order, decree, statute, law,
ordinance, rule or regulation applicable to Motient or Sub or their
respective properties or assets, including, but not limited to, the MSV
Documents. Except in connection or in order to comply with the applicable
provisions of (a) the HSR Act and, if necessary, similar foreign
competition or Antitrust Laws, (b) the filing of the Distribution
Registration Statement, the Preferred Registration Statement or pursuant to the
Registration Rights Agreement, under the Securities Act, (c) filings or
approvals required under state securities or “blue sky” laws, and (d) the
Communications Laws, no consent, approval, order or authorization of, or
registration, declaration or filing with, any federal, state, local or foreign
court, arbitral tribunal, administrative agency or commission or other
governmental or other regulatory body, authority or administrative agency or
commission (collectively, a “Governmental Entity”),
is required by or with respect to Motient or Sub in connection with the
execution and delivery of this Agreement by Motient or Sub or the consummation
by Motient or Sub of the transactions contemplated hereby, except for such
consents, authorizations, filings, approvals and registrations which, if not
obtained or made, would not have a Motient Material Adverse Effect.

 

Section 2.5                                      Purchase
Entirely for Own Account. The SkyTerra Shares (and the shares of SkyTerra
Common Stock into which such shares are exchangeable) to be issued to Motient
will be (i) acquired for distribution by Motient in a dividend of shares
of SkyTerra Common Stock to the Motient Common Stockholders pursuant to the
Distribution Registration Statement, or (ii) acquired for investment for
Motient’s own account, not as a nominee or agent, and not with a view to the
resale or distribution of any part thereof, in each case, in violation of
applicable securities laws, and Motient has no present intention of selling,
granting any participation in, or otherwise distributing such SkyTerra Shares
except in compliance with applicable securities laws. The Additional SkyTerra
Shares to be issued to Motient will be (A) acquired for distribution by
Motient to the Motient Preferred Stockholders upon their conversion of Motient
Preferred Stock into shares of Motient Common Stock pursuant to the Preferred
Registration Statement, or (B) acquired for investment for Motient’s own
account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, in each case, in violation of applicable
securities laws, and Motient has no present intention of selling, granting any
participation in, or otherwise distributing such Additional SkyTerra Shares
except in compliance with applicable securities laws.

 

7

 

Section 2.6                                      Reliance
Upon Motient’s Representations. Motient understands that the SkyTerra
Shares issued to Motient in accordance with Section 2.5(ii) (but not
those for distribution to the Motient Common Stockholders in accordance with Section 2.5(i))
(the “Restricted SkyTerra Shares”)
and the Additional SkyTerra Shares issued to Motient in accordance with Section 2.5(B) (but
not those for distribution to the Motient Preferred Stockholders in accordance
with Section 2.5(A)) (the “Restricted Additional SkyTerra
Shares”) will not be registered under the Securities Act and the
sale provided for in this Agreement and SkyTerra’s issuance of the Restricted
SkyTerra Shares and Restricted Additional SkyTerra Shares hereunder will be
made in reliance upon an exemption from registration under the Securities Act
pursuant to Section 4(2) thereof, and that, in such case, SkyTerra’s
reliance on such exemption will be based on Motient’s representations set forth
herein.

 

Section 2.7                                      Receipt
of Information. Motient believes it has received all the information it
considers necessary or appropriate for deciding whether to acquire the
Restricted SkyTerra Shares or the Restricted Additional SkyTerra Shares. Motient
further represents that it has had an opportunity to ask questions and receive
answers from SkyTerra regarding the terms and conditions of the offering of the
Restricted SkyTerra Shares or the Restricted Additional SkyTerra Shares and the
business and financial condition of SkyTerra and to obtain additional
information (to the extent SkyTerra possessed such information or could acquire
it without unreasonable effort or expense) necessary to verify the accuracy of
any information furnished to it or to which it had access. The foregoing,
however, does not limit or modify the representations or warranties of SkyTerra
in this Agreement or the right of Motient and Sub to rely upon such
representations or warranties. Neither Motient nor Sub has received, nor is
either relying on, any representations or warranties from SkyTerra, other than
as provided herein.

 

Section 2.8                                      Investor
Status; etc. Motient certifies and represents to SkyTerra that it is an “accredited
investor” as defined in Rule 501 of Regulation D promulgated under the
Securities Act and was not organized for the purpose of acquiring the
Restricted SkyTerra Shares or Restricted Additional SkyTerra Shares. Motient’s
financial condition is such that it is able to bear the risk of holding the
Restricted SkyTerra Shares or Restricted Additional SkyTerra Shares for an
indefinite period of time and the risk of loss of its entire investment. Motient
has sufficient knowledge and experience in investing in companies similar to
SkyTerra so as to be able to evaluate the risks and merits of its investment in
SkyTerra.

 

Section 2.9                                      Liens
for Taxes. There are no Liens arising from or related to Taxes on or
pending against the MSV Interests or the Retained MSV Interests other than
Liens for Taxes that are not yet due and payable.

 

Section 2.10                                Brokers
or Finders. Except for fees which shall be borne solely by Motient, neither
Motient nor Sub has incurred, nor will either of them incur, directly or
indirectly, any liability for brokerage or finders’ fees or agents’ commissions
or investment bankers’ fees or any similar charges in connection with this
Agreement or any transaction contemplated hereby.

 

Section 2.11                                Restricted
Securities. Motient understands that the Restricted SkyTerra Shares and the
Restricted Additional SkyTerra Shares may not be sold, transferred or
otherwise disposed of without registration under the Securities Act or an
exemption therefrom, and that in the absence of an effective registration
statement covering the Restricted SkyTerra

 

8

 

Shares and Restricted Additional SkyTerra Shares or an available
exemption from registration under the Securities Act, the Restricted SkyTerra
Shares and Restricted Additional SkyTerra Shares, must be held indefinitely. In
particular, Motient is aware that the Restricted SkyTerra Shares and Restricted
Additional SkyTerra Shares may not be sold pursuant to Rule 144 or Rule 145
promulgated under the Securities Act unless all of the conditions of the
applicable rule are met. Among the conditions for use of Rules 144
and 145 is the availability of current information to the public about
SkyTerra.

 

Section 2.12                                Legends.
It is understood that the certificates evidencing the Restricted SkyTerra
Shares and the Restricted Additional SkyTerra Shares to be sold to Motient for
resale will bear one or both of the following legends:

 

(a)                                  “These securities have not been
registered under the Securities Act of 1933, as amended. They may not be
sold, offered for sale, pledged or hypothecated in the absence of a
registration statement in effect with respect to the securities under such Act
or an opinion of counsel satisfactory to SkyTerra Communications, Inc.
that such registration is not required.”

 

(b)                                 Any legend required by the laws of
the State of Delaware or other jurisdiction.

 

Section 2.13                                Distribution
Registration Statement and Preferred Registration Statement. Motient and
Sub shall furnish all information concerning Motient or its affiliates as
SkyTerra may reasonably request and is required under applicable law in
connection with the preparation of the Distribution Registration Statement and
the Preferred Registration Statement. None of the information to be supplied by
Motient or Sub for inclusion in the Distribution Registration Statement or the
Preferred Registration Statement will at the time such Distribution
Registration Statement or the Preferred Registration Statement, as applicable,
becomes effective and at the Initial Closing contain any untrue statement of a
material fact or omit to state any material fact required to be stated therein
or necessary in order to make the statements therein, in light of the
circumstances under which they are made, not misleading.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF SKYTERRA

 

Except as otherwise specifically provided in the Disclosure Schedule of
SkyTerra attached hereto and incorporated herein by reference which clearly
identifies the relevant section of this Agreement (the “SkyTerra Disclosure Schedule”), SkyTerra represents and
warrants to Motient and Sub, as follows:

 

Section 3.1                                      Corporate
Organization; Related Entities. SkyTerra is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware
and has the requisite corporate power and authority to own or lease its
properties and to carry on its business as it is presently being conducted. SkyTerra
is duly qualified to do business as a foreign corporation, and is in good
standing, in each jurisdiction in which the ownership of its properties or the
conduct of its business requires such qualification, except for

 

9

 

failures, if any, to be so qualified which individually or in the
aggregate have not had and could not reasonably be expected to have a SkyTerra
Material Adverse Effect. The copies of the certificate of incorporation and
bylaws of SkyTerra heretofore made available to Motient are complete and
current copies of such instruments as presently in effect. A “SkyTerra Material Adverse Effect” means a material
adverse effect respecting (a) the business, assets and liabilities (taken
together) or financial condition of SkyTerra and its subsidiaries on a
consolidated basis or (b) the ability of SkyTerra to consummate the
transactions contemplated by this Agreement or fulfill the conditions to
Closing set forth herein, except to the extent (in the case of either clause (a) or
clause (b) above) that such adverse effect results from (i) general
economic, regulatory or political conditions or changes therein in the United
States or the other countries in which such party operates; (ii) financial
or securities market fluctuations or conditions; or (iii) changes in, or
events or conditions affecting, the wireless telecommunications industry
generally.

 

Section 3.2                                      Capitalization.

 

(a)                                  As of the date of this Agreement,
the authorized capital stock of SkyTerra consists of (i) 200,000,000
shares of SkyTerra’s common stock, par value $0.01 per share (the “SkyTerra Common Stock”), 8,912,715 of which are issued
and outstanding, (ii) 100,000,000 shares of SkyTerra Non-Voting Common
Stock, 8,990,212 of which are issued and outstanding and (iii) 10,000,000
shares of preferred stock, par value $0.01 per share (“SkyTerra
Preferred Stock”), 2,000,000 of which are designated as Series A
Convertible Preferred Stock and 1,199,007 of which are issued and outstanding. SkyTerra
has no other designations of SkyTerra Preferred Stock. As of the date of this
Agreement, (1) 1,035,957 shares of SkyTerra Common Stock are reserved for
issuance pursuant to SkyTerra’s stock option plans (each a “SkyTerra Stock Option Plan”) or otherwise, a list of
which is set forth on Schedule 3.2 of the SkyTerra Disclosure
Schedule, (2) 3,353,697 shares of SkyTerra Common Stock are reserved for
issuance upon the exercise of outstanding warrants to purchase shares of
SkyTerra Common Stock or conversion of the Series A Preferred Stock, (3) 6,661,150
shares of SkyTerra Common Stock are reserved for issuance in the Rights
Offering (which includes shares of SkyTerra Non-Voting Common Stock which may be
issued to certain stockholders ), (4)  4,125,183 shares of SkyTerra Common
Stock are reserved for issuance in the acquisitions of the equity of MSV
Investors, LLC, the MSV LP Units and MSV GP Shares pursuant to Sections 5.11
and 6.12, (5) 44,333,417 shares of SkyTerra Non-Voting Common Stock and
SkyTerra Common Stock are reserved for issuance of the SkyTerra Shares, the
Additional SkyTerra Shares and the exchange of such shares for an equal number
of shares of SkyTerra Common Stock, and (6) 9,992,976 shares of SkyTerra
Common Stock and 3,573,214 shares of SkyTerra Non-Voting Common Stock are
reserved for issuance under the Transaction Exchange Agreements (as defined
below), excluding this Agreement (collectively, the “SkyTerra
Permitted Issuances”). All the issued and outstanding shares of
SkyTerra’s capital stock have been duly authorized and validly issued and are
fully paid, nonassessable and free of statutory preemptive rights and
contractual stockholder preemptive rights, with no personal liability attaching
to the ownership thereof. Except for the SkyTerra Permitted Issuances and the
Rights Offering, SkyTerra (A) does not have and is not bound by any
outstanding subscriptions, options, voting trusts, convertible securities,
warrants, calls, commitments or agreements of any character or kind calling for
the purchase, issuance or grant of any additional shares of its capital stock
or restricting the transfer of its capital stock and (B) is not a party to
any voting trust or other agreement or understanding with respect to the voting
of the capital stock or other equity securities of SkyTerra.

 

10

 

(b)                                 The SkyTerra Shares and the
Additional SkyTerra Shares have been duly and validly authorized, and, when
issued upon the terms hereof, will be fully paid, nonassessable and free of
statutory preemptive rights and contractual stockholder preemptive rights, with
no personal liability attaching to the ownership thereof.

 

Section 3.3                                      Authority
Relative to this Agreement and the Registration Rights Agreement. SkyTerra
has the requisite corporate power and authority to execute and deliver this
Agreement, and the Registration Rights Agreement and to consummate the
transactions contemplated hereby and thereby. The execution and delivery of
this Agreement and the Registration Rights Agreement by SkyTerra and the
consummation by SkyTerra of the transactions contemplated hereby and thereby
have been duly authorized by SkyTerra’s Board of Directors, and no other corporate
or stockholder proceedings on the part of SkyTerra are necessary to
authorize this Agreement or the Registration Rights Agreement or for SkyTerra
to consummate the transactions contemplated hereby or thereby. This Agreement
and the Registration Rights Agreement have been duly and validly executed and
delivered by SkyTerra and, assuming the due authorization, execution and
delivery thereof by Motient and Sub, constitute the valid and binding
obligations of SkyTerra, enforceable against SkyTerra in accordance with their terms.

 

Section 3.4                                      Consents
and Approvals; No Violations. Except in connection or in order to comply
with the applicable provisions of (a) the HSR Act, and if necessary,
similar foreign competition or Antitrust Laws, (b) the filing of the Distribution
Registration Statement, the Preferred Registration Statement or pursuant to the
Registration Rights Agreement, under the Securities Act, (c) filings or
approvals required under state securities or “blue sky” laws, (d) the Communications
Laws and (e) the MSV Tag-Along or the MSV ROFR, neither the execution and
delivery of this Agreement, nor the consummation of the transactions
contemplated hereby will, conflict with, or result in any violation of, or
default under (with or without notice or lapse of time, or both), or give rise
to a right of termination, cancellation or acceleration of any obligation or
loss of a benefit under (i) any provision of the organizational documents
of SkyTerra, (ii) any material mortgage, indenture, lease, contract or
other agreement or instrument, permit, concession, franchise, license,
judgment, order, decree, statute, law, ordinance, rule or regulation
applicable to SkyTerra or its properties or assets, including but not limited
to the MSV Documents. Except in connection or in order to comply with the
applicable provisions of (a) the HSR Act, and if necessary, similar
foreign competition or Antitrust Laws, (b) the filing of the Distribution
Registration Statement, the Preferred Registration Statement or pursuant to the
Registration Rights Agreement, under the Securities Act, (c) filings or
approvals required under state securities or “blue sky” laws, and (d) the
Communications Laws, no consent, approval, order or authorization of, or
registration, declaration or filing with, any Governmental Entity is required
by or with respect to SkyTerra in connection with the execution and delivery of
this Agreement by SkyTerra or the consummation by SkyTerra of the transactions
contemplated hereby except for such consents, authorizations, filings,
approvals and registrations which, if not obtained or made, would not have a
SkyTerra Material Adverse Effect.

 

Section 3.5                                      Reports
and Financial Statements.

 

(a)                                  Except as set forth on Schedule 3.5(a) of
the SkyTerra Disclosure Schedule, SkyTerra has timely filed all reports
required to be filed with the SEC pursuant to the

 

11

 

Securities
Exchange Act of 1934, as amended (the “Exchange
Act”) or the Securities Act since January 1, 2004 (collectively,
the “SkyTerra SEC Reports”), and
has previously made available to Motient true and complete copies of all such
SkyTerra SEC Reports. Such SkyTerra SEC Reports, as of their respective dates
(or if amended or superseded by a filing prior to the date of this Agreement,
then on the date of such filing), complied in all material respects with the
applicable requirements of the Securities Act and the Exchange Act, as the case
may be, and none of such SkyTerra SEC Reports, as of their respective
dates (or if amended or superseded by a filing prior to the date of this
Agreement, then on the date of such filing), contained any untrue statement of
a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading. The consolidated
financial statements of SkyTerra included in the SkyTerra SEC Reports have been
prepared in accordance with GAAP consistently applied throughout the periods
indicated (except as otherwise noted therein or, in the case of unaudited
statements, as permitted by Form 10-Q of the SEC) and fairly present
(subject, in the case of unaudited statements, to normal, recurring year-end
adjustments and any other adjustments described therein), in all material
respects, the consolidated financial position of SkyTerra and its consolidated
Subsidiaries as at the dates thereof and the consolidated results of operations
and cash flows of SkyTerra and its consolidated subsidiaries for the periods
then ended. Except as disclosed in SkyTerra SEC Reports there has been no
change in any of the significant accounting (including Tax accounting) policies
or procedures of SkyTerra since December 31, 2005.

 

(b)                                 Except as set forth on Schedule 3.5(b) of
the SkyTerra Disclosure Schedule, SkyTerra maintains a system of internal
accounting controls sufficient to provide reasonable assurances that: (i) transactions
are executed in accordance with management’s general or specific authorization;
(ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP or any other criteria applicable
to such statements and to maintain accountability for assets; (iii) access
to assets is permitted only in accordance with management’s general or specific
authorization; and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences.

 

(c)                                  Since January 1, 2005, neither
SkyTerra nor, to SkyTerra’s knowledge, any director, officer, employee,
auditor, accountant or representative of SkyTerra has received or otherwise had
or obtained knowledge of any complaint, allegation, assertion or claim, in
writing, regarding the accounting or auditing practices, procedures,
methodologies or methods of SkyTerra or SkyTerra’s internal accounting
controls, including any complaint, allegation, assertion or claim that SkyTerra
has engaged in questionable accounting or auditing practices. No attorney
representing SkyTerra, whether or not employed by SkyTerra, has reported “evidence
of a material violation” (as defined in 17 CFR Part 205) to SkyTerra’s
board of directors or any committee thereof or to any director or officer of
SkyTerra.

 

Section 3.6                                      Absence
of Certain Changes or Events. Except as set forth in SkyTerra SEC Reports
filed prior to the date of this Agreement or as set forth on Schedule 3.6
of the SkyTerra Disclosure Schedule, since December 31, 2005, (i) SkyTerra
has conducted its business and operations in the ordinary course of business
and consistent with past practices and (ii) there has not been any fact,
event, circumstance or change affecting or relating to SkyTerra which has had
or could reasonably be expected to have a SkyTerra Material Adverse Effect.

 

12

 

Except as could not reasonably be expected to represent a SkyTerra
Material Adverse Effect or as set forth on Schedule 3.6 of the
SkyTerra Disclosure Schedule, the transactions contemplated by this Agreement
will not constitute a change of control under or require the consent from or
the giving of notice to a third party pursuant to the terms, conditions or
provisions of any SkyTerra Contract (defined below).

 

Section 3.7                                      Litigation.
Except for litigation disclosed in the notes to the audited financial
statements of SkyTerra as of and for the period ended December 31, 2005,
or in SkyTerra SEC Reports filed subsequent thereto but prior to the date of
this Agreement, as of the date hereof, there is no suit, action, proceeding or
investigation pending or, to the knowledge of SkyTerra, threatened against
SkyTerra or with respect to which SkyTerra could be required to provide
indemnification or to otherwise contribute to liabilities or damages relating
thereto, the outcome of which has had or could reasonably be expected to have a
SkyTerra Material Adverse Effect; nor is there any judgment, decree,
injunction, rule or order of any Governmental Entity outstanding against
SkyTerra having, or which has had or could reasonably be expected to have a
SkyTerra Material Adverse Effect.

 

Section 3.8                                      Compliance
with Law. SkyTerra has not violated any Laws and is in compliance with all
Laws, other than where such violation or noncompliance, individually or in the
aggregate, has not had and could not reasonably be expected to have a SkyTerra
Material Adverse Effect. SkyTerra has not received any notice to the effect
that, or otherwise been advised that or is aware that, SkyTerra is not in such
compliance with any Laws, and SkyTerra has no knowledge that any existing
circumstances are reasonably likely to result in such violations of any Laws.

 

Section 3.9                                      Absence
of Undisclosed Liabilities. Except for liabilities or obligations which are
accrued or reserved against in SkyTerra’s consolidated financial statements (or
reflected in the notes thereto) as of and for the period ended December 31,
2005 as included in SkyTerra SEC Reports or which were incurred after December 31,
2005 in the ordinary course of business and consistent with past practice,
SkyTerra has no liabilities or obligations (whether absolute, accrued,
contingent or otherwise) of a nature required by GAAP to be reflected in a
balance sheet (or reflected in the notes thereto) or which have had or could
reasonably be expected to have a SkyTerra Material Adverse Effect, other than
amounts that are completely and fully satisfied prior to the Initial Closing.

 

Section 3.10                                No
Default. As of the date of this Agreement, SkyTerra is not in breach or
violation of, or in default under (and no event has occurred which with notice
or lapse of time or both would constitute such a breach, violation or default),
any term, condition or provision of (a) its certificate of incorporation
or bylaws, or (b) (x) any order, writ, decree, statute, rule or
regulation of any Governmental Entity applicable to SkyTerra or any of its
properties or assets or (y) any agreement required to be filed as a “Material Contract” as an exhibit to SkyTerra’s Annual
Report on Form 10-K for the year ended December 31, 2005 or any
periodic Exchange Act report required to be filed since then (a “SkyTerra Contract”), except
in the case of this clause (b), which breaches, violations or defaults,
individually or in the aggregate, have not had and could not reasonably be
expected to have a SkyTerra Material Adverse Effect.

 

13

 

Section 3.11                                Taxes.
Except as would not reasonably be expected to have a SkyTerra Material Adverse
Effect:

 

(a)                                  SkyTerra has timely filed all Tax
Returns required to be filed by it (taking into account all applicable
extensions) and all such Tax Returns are true, correct and complete in all
respects.

 

(b)                                 SkyTerra has paid all Taxes shown
due on its Tax Returns.

 

(c)                                  There is no pending or, to the
knowledge of SkyTerra, threatened examination, investigation, audit, suit,
action, claim or proceeding relating to Taxes of SkyTerra.

 

(d)                                 SkyTerra has not received written notice
of a determination by any taxing or other Governmental Entity that Taxes are
owed by SkyTerra (such determination being referred to as a “Tax Deficiency”) and, to the knowledge of SkyTerra, no
Tax Deficiency is proposed or threatened.

 

(e)                                  All Tax Deficiencies asserted
against SkyTerra have been paid or finally settled and all amounts asserted in
any Tax Deficiency to be owed have been paid.

 

(f)                                    There are no Liens arising from or
related to Taxes on or pending against SkyTerra or any of its properties other
than statutory Liens for Taxes that are not yet due and payable.

 

(g)                                 As used in this Agreement:

 

(i)             “Tax”
means any and all federal, state, local, foreign or other tax of any kind
(together with any and all interest, penalties, additions to tax and additional
amounts imposed with respect thereto) imposed by any Tax Authority, including
taxes on or with respect to income, alternative minimum, accumulated earnings,
personal holding company, capital, transfer, stamp, franchises, windfall or
other profits, gross receipts, property, sales, use, capital stock, payroll,
employment, unemployment, social security, workers’ compensation or net worth,
and taxes in the nature of excise, withholding, ad valorem or value added; and

 

(ii)          “Tax
Return” means any return, report or similar statement (including
any attached schedules) required to be filed with respect to Taxes and any
information return, claim for refund, amended return, or declaration of
estimated Taxes.

 

Section 3.12                                Intellectual
Property.

 

(a)                                  SkyTerra owns or holds licenses or otherwise
has such rights to use, sell, license or dispose of all of the intellectual
property rights used in the conduct of the business of SkyTerra as currently
conducted, with such exceptions as individually or in the aggregate have not
had and could not reasonably be expected to have a SkyTerra Material Adverse
Effect.

 

14

 

(b)                                 With such exceptions as individually
or in the aggregate have not had and could not reasonably be expected to have a
SkyTerra Material Adverse Effect, (i) the operation of SkyTerra’s business
and the manufacture, marketing, use, sale, licensure or disposition of any
Intellectual Property in the manner currently used, sold, licensed or disposed
of by SkyTerra does not and will not infringe on the proprietary rights of any
person, nor has such an infringement been alleged within six years preceding
the date of this Agreement (other than such as have been resolved); (ii) there
is no pending or threatened claim or litigation challenging or questioning the
validity, ownership or right to use, sell, license or dispose of any such
Intellectual Property in the manner in which currently used, sold, licensed or
disposed of by SkyTerra, nor is there a valid basis for any such claim or
litigation, nor has SkyTerra received any notice asserting that the proposed
operation of SkyTerra’s business or the use, sale, license or disposition by
SkyTerra of any of the Intellectual Property of SkyTerra conflicts or will
conflict with the rights of any other party, nor is there a valid basis for any
such assertion in each case; and (iii) none of the Intellectual Property
used in the conduct of the business of SkyTerra as currently conducted is being
infringed by any person and SkyTerra has not asserted any claim of
infringement, misappropriation or misuse within the past six years.

 

Section 3.13                                Permits.
SkyTerra has, and is in compliance with, all Permits required to conduct its
business as now being conducted, except any such SkyTerra Permit the absence of
which, individually or in the aggregate, has not had and could not reasonably
be expected to have a SkyTerra Material Adverse Effect (“SkyTerra Material Permits”). All SkyTerra Material
Permits are valid and in full force and effect. There is not now pending, or to
the knowledge of SkyTerra, threatened, any action by any person or by or before
any Governmental Entity to revoke, cancel, rescind, modify or refuse to renew
any SkyTerra Material Permits and, other than as set forth on Schedule 3.13
of the SkyTerra Disclosure Schedule, there exist no facts or circumstances that
would reasonably be expected to give rise to such action. “SkyTerra Permits” means all licenses, permits,
franchises, approvals, authorizations, certificates, registrations, consents or
orders of, or filings with, any Governmental Entity used or held for use in the
operation of SkyTerra’s business and all other rights and privileges granted by
a Governmental Entity necessary to allow SkyTerra to own and operate its
business without any violation of law.

 

Section 3.14                                Brokers.
No broker, finder or financial advisor is entitled to any brokerage, finder’s
or other fee or commission in connection with the transactions contemplated by
this Agreement based upon arrangements made by or on behalf of SkyTerra.

 

Section 3.15                                Contracts.
All SkyTerra Contracts that are material to the business or operations of
SkyTerra taken as a whole have been filed as exhibits to SkyTerra’s Annual
Report on 10-K for the year ended December 31, 2005 or any periodic Exchange
Act report required to be filed since then, are valid and binding obligations
of SkyTerra, and, to the knowledge of SkyTerra, the valid and binding
obligation of each other party thereto, except such SkyTerra Contracts that, if
not so valid and binding, individually or in the aggregate, have not had and
could not reasonably be expected to have a SkyTerra Material Adverse Effect. Neither
SkyTerra nor, to the knowledge of SkyTerra, any other party thereto, is in
violation of or in default in respect of, nor has there occurred an event or
condition, that with the passage of time or giving of notice (or both), would
constitute a default under or permit the termination of, any such SkyTerra
Contract except such violations or defaults under or terminations that,

 

15

 

individually or in the aggregate, have not had and could not reasonably
be expected to have a SkyTerra Material Adverse Effect.

 

Section 3.16                                Insurance.
SkyTerra’s insurance policies are in all respects in full force and effect in
accordance with their terms, no notice of cancellation has been received, and
there is no existing default or event that, with the giving of notice or lapse
of time or both, would constitute a default thereunder. SkyTerra has made
available to Motient true and correct copies of all insurance policies
maintained by SkyTerra, or evidence thereof, as of the date of this Agreement.

 

Section 3.17                                Ownership
of MSV LP Units and MSV GP Shares. As of the date hereof, SkyTerra or its
subsidiaries own 7,929,598 MSV LP Units and 792.96 MSV GP Shares and at the
Initial Closing SkyTerra or its subsidiaries will own not less than 7,929,598
MSV LP Units and 792.96 MSV GP Shares (in each case as appropriately adjusted
for any stock split, combination, reorganization, recapitalization,
reclassification, stock dividend, stock distribution or similar event with
respect to the MSV LP Units or MSV GP Shares that is declared or effected prior
to the Initial Closing).

 

Section 3.18                                Purchase
Entirely for Own Account. The MSV Interests and the Retained MSV Interests
to be transferred to SkyTerra will be acquired for investment for SkyTerra’s
own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, in each case, in violation of applicable
securities laws, and SkyTerra has no present intention of selling, granting any
participation in, or otherwise distributing the same except in compliance with
applicable securities laws.

 

Section 3.19                                Reliance
Upon SkyTerra’s Representations. SkyTerra understands that MSV Interests
and the Retained MSV Interests will not be registered under the Securities Act
and the sale provided for in this Agreement and Motient and Sub’s transfer of
securities hereunder will be made in reliance upon an exemption from
registration under the Securities Act, and that, in such case, Motient and Sub’s
reliance on such exemption will be based on SkyTerra’s representations set
forth herein.

 

Section 3.20                                Receipt
of Information. SkyTerra believes it has received all the information it
considers necessary or appropriate for deciding whether to acquire MSV
Interests and the Retained MSV Interests. SkyTerra further represents that it
has had an opportunity to ask questions and receive answers from Motient
regarding the terms and conditions of the MSV Interests and the Retained MSV
Interests and the business and financial condition of MSV and to obtain
additional information (to the extent Motient possessed such information or
could acquire it without unreasonable effort or expense) necessary to verify
the accuracy of any information furnished to it or which it had access. The
foregoing, however, does not limit or modify the representations or warranties
of Motient and Sub in this Agreement or the right of SkyTerra to rely upon such
representations or warranties. SkyTerra has not received, nor is it relying on,
any representations or warranties from Motient or Sub, other than as provided
herein.

 

Section 3.21                                Investor
Status; etc. SkyTerra certifies and represents to Motient and Sub that it
is an “accredited investor” as defined in Rule 501 of Regulation D
promulgated under the Securities Act and was not organized for the purpose of
acquiring MSV Interests or the

 

16

 

Retained MSV Interests. SkyTerra’s financial condition is such that it
is able to bear the risk of holding the MSV Interests and the Retained MSV
Interests for an indefinite period of time and the risk of loss of its entire
investment. SkyTerra has sufficient knowledge and experience in investing in
companies similar to MSV so as to be able to evaluate the risks and merits of
its investment in MSV.

 

Section 3.22                                Restricted
Securities. SkyTerra understands that the MSV Interests and the Retained
MSV Interests may not be sold, transferred or otherwise disposed of
without registration under the Securities Act or an exemption therefrom, and
that in the absence of an effective registration statement covering the MSV
Interests and the Retained MSV Interests or an available exemption from
registration under the Securities Act, such MSV Interests and the Retained MSV
Interests, must be held indefinitely. In particular, SkyTerra is aware that
such MSV Interests and the Retained MSV Interests may not be sold pursuant
to Rule 144 or Rule 145 promulgated under the Securities Act unless
all of the conditions of the applicable rule are met. Among the conditions
for use of Rules 144 and 145 is the availability of current information to
the public about MSV.

 

Section 3.23                                Distribution
Registration Statement and the Preferred Registration Statement. None of
the information to be supplied by SkyTerra for inclusion in the Distribution
Registration Statement or the Preferred Registration Statement will at the time
such Distribution Registration Statement or the Preferred Registration
Statement, as applicable, becomes effective and at the time of the Initial
Closing contain any untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary in order to make the
statements therein, in light of the circumstances under which they are made,
not misleading except that no representation is made by SkyTerra with respect
to statements made therein based on information supplied by Motient or any of
its subsidiaries or their representatives for inclusion in the Distribution
Registration Statement or the Preferred Registration Statement pursuant to Section 2.13.
The Distribution Registration Statement and the Preferred Registration Statement
will comply as to form in all material respects with the applicable
provisions of the Securities Act, and the rules and regulations
promulgated thereunder.

 

Section 3.24                                Issuances
Exempt. Assuming the truth and accuracy of the representations and warranties
of Motient contained in Article II hereof, the offer, sale, and issuance
of the Restricted SkyTerra Shares and the Restricted Additional SkyTerra Shares
will be exempt from the registration requirements of the Securities Act, and
will have been registered or qualified (or are exempt from registration and
qualification) under the registration, permit or qualification requirements of
all applicable state securities laws, except as permitted pursuant to Section 4.2.

 

Section 3.25                                No
Integrated Offering. Neither SkyTerra, nor any of its Affiliates or any
other person acting on SkyTerra’s behalf, has directly or indirectly engaged in
any form of general solicitation or general advertising with respect to
the Restricted SkyTerra Shares and the Restricted Additional SkyTerra Shares
nor have any of such persons made any offers or sales of any security or
solicited any offers to buy any security under circumstances that would require
registration of the Restricted SkyTerra Shares and Restricted Additional SkyTerra
Shares under the Securities Act or cause this offering of the Restricted
SkyTerra Shares and Restricted

 

17

 

Additional SkyTerra Shares to be integrated with any prior offering of
securities of SkyTerra for purposes of the Securities Act.

 

ARTICLE IV

ADDITIONAL AGREEMENTS

 

Section 4.1                                      HSR
Act and FCC Approval. The parties will promptly execute and file, or join
in the execution and filing of, any application, notification (including any
notification or provision of information, if any, that may be required
under the HSR Act, which the parties shall file no later than 15 business days
after the date hereof) or other document that may be necessary in order to
obtain the authorization, approval or consent of any Governmental Entity, which
may be reasonably required in connection with the consummation of the
transactions contemplated by this Agreement. Any fees associated with such
notifications or applications shall be borne 50% by Motient and 50% by SkyTerra.
Each party will use commercially reasonable efforts to obtain, or assist the
other parties in obtaining, all such authorizations, approvals and consents,
including without limitation using commercially reasonable efforts to supply as
promptly as practicable any additional information and documentary material
that may be requested pursuant to the HSR Act and to request the
expiration or termination of the applicable waiting periods under the HSR Act
as soon as practicable. Each party shall, in connection with its obligation to
use commercially reasonable efforts to obtain, or assist the other parties in
obtaining, all such requisite authorizations, approvals or consents, use
commercially reasonable efforts to (i) cooperate in all reasonable
respects with the other parties in connection with any filing or submission and
in connection with any investigation or other inquiry, including any proceeding
initiated by a private party, (ii) promptly inform the other parties
of any communication received by such party from or given by such party to, the
United States Department of Justice (the “DOJ”),
the United States Federal Trade Commission (the “FTC”),
the FCC or any other Governmental Entity or quasi-governmental entity and of
any material communication received or given in connection with any proceeding
by a private party, in each case regarding any of the transactions contemplated
hereby, (iii) permit the other parties, or the other parties’ legal
counsel, to review any communication given by it to, and consult with the other
parties in advance of any meeting or conference with, the DOJ, the FTC, the FCC
or any such other Governmental Entity or quasi-governmental entity or, in
connection with any proceeding by a private party, with any other person and (iv) to
the extent permitted by the FCC or other Governmental Entity, as appropriate,
give the other parties the opportunity to attend and participate in such
meetings and conferences.

 

Section 4.2                                      Blue
Sky Laws. SkyTerra shall exercise its commercially reasonable best efforts
to register or qualify (or obtain an exemption from registration) the SkyTerra
Shares and the Additional SkyTerra Shares under the blue sky laws of the 50
states of the United States and of the District of Columbia and such other
jurisdictions as Motient shall reasonably request, such registration,
qualification or exemption to be obtained prior to the issuance and delivery to
Motient’s stockholders of the applicable shares in accordance with this
Agreement; provided, however, that, in the case of non-U.S.
jurisdictions, SkyTerra will not be required to (a) qualify generally to
do business in any jurisdiction where it would not otherwise be required to
qualify but for this Section 4.2, (b) subject itself to taxation in
any such jurisdiction or (c) consent to general service of process in any
such jurisdiction). SkyTerra shall

 

18

 

pay for all fees (including filing and application fees), costs and
expenses in connection therewith. However, the failure to obtain such “blue sky”
clearance in each such jurisdiction shall not be a condition to closing and
shall not prevent a Closing from occurring; provided, that SkyTerra
shall not fail to obtain such “blue sky” clearance in (i) more than five
such jurisdictions, (ii) Texas or (iii) New York; rather, those
SkyTerra Shares or Additional SkyTerra Shares which may not be lawfully
delivered (assuming exchange pursuant to Section 4.7) shall be held in
trust by Motient or its nominee for the benefit of the stockholders of record
otherwise entitled thereto until such time as they may be lawfully
delivered. If, after the fifth anniversary of the Closing, such shares still may not
be lawfully delivered, then SkyTerra shall deliver such shares to the
government agency or official responsible for administering the securities or
blue sky laws in such jurisdiction. Motient shall cooperate with and assist
SkyTerra in connection with obtaining the “blue sky” clearance contemplated by
this Section 4.2.

 

Section 4.3                                      Compliance
with MSV Documents. (a)  The parties intend that this Agreement and
the transactions contemplated hereby be consistent with the conditions and
restrictions applicable to the parties and/or their affiliates pursuant to MSV’s
organizational documents and/or pursuant to the agreements between or among MSV’s
limited partners or the stockholders of MSV GP, including, without limitation,
the MSV Documents (collectively, the “MSV
Investor Agreements”). SkyTerra, Sub and Motient shall take all
commercially reasonable actions necessary to comply with, or appropriately
amend, the provisions of the MSV Investor Agreements relating to the sale of
the MSV Interests and the Retained MSV Interests pursuant hereto.

 

(b)                                 Sub and SkyTerra shall each comply
with the MSV ROFR. Notwithstanding the foregoing, any Transfer Notice (as defined
in the MSV GP Stockholders Agreement) delivered by Sub pursuant to the MSV ROFR
shall state that the minimum amount of MSV LP Units SkyTerra is willing to
accept pursuant to this Agreement is the number of MSV LP Units to be exchanged
in accordance with this Agreement. If another party to the MSV GP Stockholders
Agreement exercises its right of first refusal pursuant to Section 8.2(a) thereof,
Sub shall not be required to exchange its MSV Interests for the SkyTerra Shares
pursuant to the terms hereof to the extent of such exercise, and its
obligations hereunder shall be terminated with respect to the MSV Interests
purchased by such other party pursuant thereto. Further, if another party to the
MSV GP Stockholders’ Agreement exercises its right of first refusal pursuant to
Section 8.2(a) of the MSV GP Stockholders’ Agreement and SkyTerra
then exercises any of its rights under such Section 8.2(a), any purchase
of MSV Interests by SkyTerra shall be made pursuant to this Agreement
regardless of any substitute terms provided pursuant to such Section 8.2(a).

 

(c)                                  Sub hereby waives any rights of such
party under Section 8.2(a) of the MSV GP Stockholders Agreement in
connection with respect to any transactions contemplated by this Agreement or
any other Transaction Exchange Agreement (as defined on Schedule B
hereto).

 

(d)                                 If any party to the MSV GP Stockholders
Agreement exercises its right of first refusal pursuant to Section 8.2(a) of
the MSV GP Stockholders’ Agreement in connection with the transactions
contemplated by any other Transaction Exchange Agreement,

 

19

 

and the result
of such exercise shall be that upon the consummation of the transactions contemplated
by this Agreement and the other Transaction Exchange Agreements (to the extent
such agreements have not been terminated as a result of such exercise),
SkyTerra would not have the right to acquire 17,092,395.81 MSV LP Units,
SkyTerra shall have the right to terminate this Agreement.

 

Section 4.4                                      No
Transfers; No Alternative Transactions; Standstill.

 

(a)                                  Motient shall not, and shall cause
its subsidiaries and the officers, directors, employees, representatives
(including, without limitation, investment bankers, attorneys and accountants),
agents or Affiliates or Motient and its subsidiaries not to, directly or
indirectly, (i) solicit, initiate, encourage or facilitate any inquiries
or the making of a proposal or offer with respect to, or consummate, an
Alternative Proposal, (ii) participate in any discussions or negotiations
with, deliver any consent with respect to, or provide any non-public
information to, or afford any access to the properties, books or records of
MSV, or otherwise take any other action to assist, facilitate or undertake
(including granting any waiver or release under any standstill or similar
agreement with respect to any securities of MSV), by itself or with any “person”
or “group” (as such terms are used for purposes of Section 13(d)(3) of
the Exchange Act), any Alternative Proposal, or (iii) acquire, of record
or beneficially, or have, by conversion, warrant, option or otherwise, any
right or interest in or any agreement to acquire any MSV LP Units or MSV GP
Shares, other than the MSV Interests, the Retained MSV Interests owned as of
the date hereof, or, prior to the Initial Closing, its indirect ownership of
MSV LP Units and MSV GP Shares due to its ownership of shares of common stock
of the Columbia/Spectrum Blocker Corporations. “Alternative Proposal” shall
mean any offer or proposal, or any indication of interest in making an offer or
proposal, made by any “person” or “group” (as such terms are used for purposes
of Section 13(d)(3) of the Exchange Act) at any time, directly or
indirectly, to acquire the MSV Interests or the Retained MSV Interests, (b) directly
or indirectly sell, transfer, distribute, pledge, dispose of, grant an option
with respect to or encumber the MSV Interests or the Retained MSV Interests or (c) deposit
the MSV Interests or the Retained MSV Interests into a voting trust or enter
into a voting agreement or arrangement with respect to the MSV Interests or the
Retained MSV Interests or grant any proxy with respect thereto, in each case
other than the transactions contemplated by this Agreement.

 

(b)                                 The parties shall execute,
immediately prior to the Initial Closing, an instrument designating SkyTerra as
the voting party for the MSV LP Units transferred at the Initial Closing (and,
at each Subsequent Closing, an instrument designating SkyTerra as the voting
party for the additional MSV LP Units transferred at such Subsequent Closing)
for all matters requiring the vote of the Motient Group pursuant to Section 2.04(b) of
the Voting Agreement, dated as of November 12, 2004 by and among those
stockholders of Mobile Satellite Ventures GP Inc listed therein, as amended to
date. Further, immediately prior to the Initial Closing the parties shall (i) amend
Section 6.2 of the Amended and Restated Limited Partnership Agreement of
Mobile Satellite Ventures LP (the “MSV LP Agreement”), dated as of November 12,
2004 in order to eliminate restrictions on transactions with affiliates, (ii) amend
the MSV LP Agreement (A) to provide that the MSV LP Agreement shall not be
amended in any manner that would impair Motient’s ability to exchange its
Retained MSV Interests for Additional SkyTerra Shares at Subsequent Closings in
accordance with the terms hereof and (B) whereby Sub shall waive its
rights under Sections 10.1(a), (b) and (g) thereof (provided;
however, that such waiver

 

20

 

shall be
conditional upon reasonable cooperation by MSV or its auditors with Sub in
answering such questions from Sub as may be reasonably necessary to facilitate
the filing of MSV’s financial statements by Sub or Motient with the SEC, in the
event such filing is required pursuant to Regulation S-X) and (iii) amend
the MSV GP Stockholders Agreement to allow the sale of shares of common stock
of MSV GP independently of limited partnership units of MSV.

 

(c)                                  Except for transactions contemplated
or permitted by this Agreement, Motient shall not, from the date hereof until
the third anniversary of the Initial Closing (x) acquire, announce an intention
to acquire, offer to acquire, or enter into any agreement, arrangement or
undertaking of any kind the purpose of which is to acquire, by purchase,
exchange or otherwise, any shares of SkyTerra Common Stock or SkyTerra
Non-Voting Common Stock or any security or obligation that is by its terms,
directly or indirectly, convertible into or exchangeable or exercisable for
shares of SkyTerra Common Stock or SkyTerra Non-Voting Common Stock, including,
without limitation the SkyTerra Preferred Stock, and any option, warrant or
other subscription or purchase right with respect to SkyTerra Common Stock,
SkyTerra Non-Voting Common Stock or SkyTerra Preferred Stock, whether by tender
offer, market purchase, privately negotiated purchase, merger or otherwise, or
(y) form, join or in any way participate in a “group” (within the meaning of Section 13(d)(3) of
the Exchange Act) or otherwise act in concert with any person in connection
with such actions.

 

(d)                                 Except for (i) transactions
contemplated or permitted by this Agreement, including without limitation, the
transactions contemplated by Section 4.12(b) or (ii) with
respect to any shares of Motient Common Stock otherwise acquired from Motient
by SkyTerra in exchange for shares of TerreStar Common Stock (as defined
below), and the disposition of such shares of Motient Common Stock permitted
pursuant to the terms of such exchange, SkyTerra shall not, from the date
hereof until the third anniversary of the Initial Closing (x) acquire, announce
an intention to acquire, offer to acquire, or enter into any agreement,
arrangement or undertaking of any kind the purpose of which is to acquire, by
purchase, exchange or otherwise, any shares of Motient Common Stock or any
security or obligation that is by its terms, directly or indirectly, convertible
into or exchangeable or exercisable for shares of Motient Common Stock,
including, without limitation any option, warrant or other subscription or
purchase right with respect to Motient Common Stock, whether by tender offer,
market purchase, privately negotiated purchase, merger or otherwise, or (y)
form, join or in any way participate in a “group” (within the meaning of Section 13(d)(3) of
the Exchange Act) or otherwise act in concert with any person in connection
with such actions.

 

Section 4.5                                      Distribution
Registration Statement and Preferred Registration Statement.

 

(a)                                  Each of the parties shall cooperate,
and SkyTerra shall file with the SEC as soon as practicable, the Distribution
Registration Statement and the Preferred Registration Statement. SkyTerra will
cause the Distribution Registration Statement and the Preferred Registration
Statement to comply as to form in all material respects with the
applicable provisions of the Securities Act and the rules and regulations
thereunder. SkyTerra shall use its commercially reasonable efforts, and Motient
will cooperate with SkyTerra, to have the Distribution Registration Statement
and the Preferred Registration Statement declared effective by the SEC as
promptly as practicable. SkyTerra will advise Motient, promptly after it
receives

 

21

 

notice
thereof, of the time when the Distribution Registration Statement or the
Preferred Registration Statement has become effective or any supplement or
amendment has been filed, the issuance of any stop order, the suspension of the
qualification of the shares of SkyTerra Common Stock for offering or sale in
any jurisdiction, or any request by the SEC for amendment of the Distribution
Registration Statement or the Preferred Registration Statement or comments
thereon and responses thereto or requests by the SEC for additional
information.

 

(b)                                 SkyTerra shall cause there to occur
Full Cooperation in connection with the Distribution Registration Agreement and
the Preferred Registration Statement. “Full Cooperation” means, where, in addition
to the cooperation otherwise required by this Agreement, SkyTerra (a) takes
all actions as Motient reasonably requests in order to expedite or facilitate
the disposition of the SkyTerra Shares (including, without limitation, causing
senior management and other SkyTerra personnel to cooperate with Motient in
connection with performing due diligence), (b) causes its counsel to issue
opinions of counsel in form, substance and scope as are customary in primary
underwritten offerings, addressed and delivered to Motient and (c) causes
its registered independent public auditors to deliver a comfort letter, in
form, substance and scope as are customary in primary underwritten offerings,
addressed and delivered to Motient.

 

(c)                                  SkyTerra shall use its commercially
reasonable efforts to maintain the effectiveness of the Distribution
Registration Statement and the Preferred Registration Statement until such time
as Motient completes the distribution to the Motient Common Stockholders
described in Section 2.5(i) hereto, in the case of the
Distribution Registration Statement, and Motient completes the distribution to
the Motient Preferred Stockholders described in Section 2.5(A) hereto,
in the case of the Preferred Registration Statement.

 

Section 4.6                                      Commercially
Reasonable Efforts. The parties shall each cooperate with each other and
use (and shall cause their respective subsidiaries to use) their respective
commercially reasonable efforts to promptly (i) take or cause to be taken
all necessary actions, and do or cause to be done all things, necessary, proper
or advisable under this Agreement or the MSV Documents and applicable laws to
consummate and make effective all the transactions contemplated by this
Agreement as soon as practicable, including, without limitation, amending the
MSV Investor Agreements, preparing and filing promptly and fully all
documentation to effect all necessary filings, notices, petitions, statements,
registrations, submissions of information, applications and other documents and
approving the change of control of MSV and (ii) obtain all approvals
required to be obtained from any Governmental Entity or third party necessary,
proper or advisable to the transactions contemplated by this Agreement. Motient
and Sub shall at any time, and from time to time, after the applicable Closing,
execute, acknowledge and deliver all further assignments, transfers, and any
other such instruments of conveyance, upon the request of SkyTerra, to confirm
the sale of the MSV Interests or Retained MSV Interests, as the case may be,
hereunder.

 

Section 4.7                                      Exchange
of SkyTerra Non-Voting Common Stock for SkyTerra Common Stock. If Motient
desires to transfer any shares of SkyTerra Non-Voting Common Stock to any
person, other than a subsidiary of Motient or an entity of which Motient is a
subsidiary, and, following such transfer and except in the case of transfers
pursuant to the Distribution Registration Statement or the Preferred
Registration Statement or in the case of sales by Motient in the open market
pursuant to an effective registration statement or an exemption

 

22

 

from registration, such person by itself or with any “person” or “group”
(as such terms are used for purposes of Section 13(d)(3) of the
Exchange Act) will not beneficially own 10% or more of SkyTerra’s voting power
(as determined pursuant to Rule 13d-3 under the Exchange Act) then, at the
request of Motient, SkyTerra will exchange such shares of SkyTerra Non-Voting
Common Stock for SkyTerra Common Stock on a one-for-one basis (in each case as
appropriately adjusted for any stock split, combination, reorganization,
recapitalization, reclassification, stock dividend, stock distribution or similar
event declared or effected after the issuance of such shares of SkyTerra
Non-Voting Common Stock being exchanged). Upon surrender of certificates
representing the shares of SkyTerra Non-Voting Common Stock that are being
exchanged as part of such transfer, SkyTerra will issue to the transferee
certificates representing the appropriate number of shares of SkyTerra Common
Stock. The shares of SkyTerra Common Stock issuable upon exchange of the shares
of SkyTerra Non-Voting Common Stock have been duly authorized by SkyTerra and,
when delivered in accordance with the terms of this Section 4.7, will be
validly issued, fully paid and nonassessable.

 

Section 4.8                                      Motient
Dividend. Motient shall use its commercially reasonable efforts to take all
steps necessary to pay the dividend of the SkyTerra Shares to the Motient
Common Stockholders promptly following the Initial Closing; provided, that the
record date for such dividend shall be a date after the Initial Closing and
following the closing of the transactions contemplated by the exchange
agreements (collectively, the “Fund Exchange Agreements”),
each dated as of the date hereof, pursuant to which Motient shall acquire 100%
of the equity of TerreStar Networks Inc. held by Columbia Capital Equity
Partners III (QP), L.P., Columbia Capital Equity Partners III (AI), L.P.,
Columbia Capital Equity Partners III (Cayman), L.P., Columbia Capital Investors
III, LLC, Columbia Capital Employee Investors III, L.L.C., Spectrum Equity
Investors Parallel IV, L.P., Spectrum Equity Investors IV L.P., Spectrum IV
Investment Managers’ Fund, L.P. Motient shall, upon taking all steps necessary
therefore, distribute the shares of SkyTerra Common Stock into which the
SkyTerra Shares issued in accordance with Section 2.5(i) are
exchangeable pursuant to Section 4.7 in a dividend to the Motient Common
Stockholders in accordance with the plan of distribution contained in the
Distribution Registration Statement and otherwise in accordance with the
Securities Act. Motient shall distribute the shares of SkyTerra Common Stock
into which the Additional SkyTerra Shares issued in accordance with Section 2.5(A) are
exchangeable pursuant to Section 4.7 to the Motient Preferred Stockholders
upon conversion of their Motient Preferred Stock into Motient Common Stock in
accordance with the plan of distribution contained in the Preferred
Registration Statement and otherwise in accordance with the Securities Act.

 

Section 4.9                                      Public
Announcements. Except as may be required by applicable law, no party
hereto shall make any public announcements or otherwise communicate with any
news media with respect to this Agreement or any of the transactions
contemplated hereby, without prior consultation with the other parties as to
the timing and contents of any such announcement or communications; provided,
however, that nothing contained herein shall prevent any party from promptly
making all filings with any Governmental Entity or disclosures with the stock
exchange, if any, on which such party’s capital stock is listed, as may, in its
judgment, be required in connection with the execution and delivery of this
Agreement or the consummation of the transactions contemplated hereby.

 

23

 

 

Section 4.10                                Prohibited
Actions; Appropriate Adjustments.

 

(a)                                  From the date hereof through the
Initial Closing, except as expressly contemplated by this Agreement, without
obtaining the prior written consent of Motient, SkyTerra shall not set any
record date with respect to any dividend or declare or pay any dividend, either
in cash, securities or otherwise, on any shares of its capital stock (other
than required dividends to the holders of the SkyTerra Preferred Stock in
accordance with the terms thereof), repurchase any shares of its capital stock,
make any distributions to the holders of its capital stock (other than regular
dividends to the holders of SkyTerra Preferred Stock) or take any other similar
action. Following the Initial Closing and until the later to occur of such time
as (i) Motient no longer holds any shares of SkyTerra Non-Voting Common
Stock and (ii) no Additional SkyTerra Shares may be purchased
pursuant to this Agreement, in the event SkyTerra declares any stock split,
combination, reclassification, dividend (in cash, securities or otherwise),
stock distribution or the like as to the SkyTerra Common Stock, SkyTerra shall
also declare an identical stock split, combination, reclassification, stock
dividend, stock distribution or the like as to the SkyTerra Non-Voting Common
Stock. In the event after the Initial Closing but prior to the final Subsequent
Closing, SkyTerra declares any stock split, combination, reclassification,
dividend (in cash, securities or otherwise), stock distribution or the like as
to the SkyTerra Non-Voting Common Stock, SkyTerra shall make appropriate
provision such that any Additional SkyTerra Shares which have not yet been sold
to Motient shall be entitled to and at the Subsequent Closing at which such
shares are purchased will receive the full benefit of such stock split,
combination, reclassification, stock dividend, stock distribution or similar
event at the time such Additional SkyTerra Shares are sold to Motient. Notwithstanding
the foregoing, this Section 4.10(a) shall not prohibit, limit or
apply to, (x) the Rights Offering or (y) the SkyTerra Permitted Issuances.

 

(b)                                 From the date hereof through the
Initial Closing, except for the SkyTerra Permitted Issuances, without obtaining
the prior written consent of Motient, SkyTerra shall not issue any shares of
SkyTerra Common Stock or SkyTerra Non-Voting Common Stock or any security or
obligation that is by its terms, directly or indirectly, convertible into or
exchangeable or exercisable for shares of SkyTerra Common Stock or SkyTerra
Non-Voting Common Stock, including, without limitation the SkyTerra Preferred
Stock, and any option, warrant or other subscription or purchase right with
respect to SkyTerra Common Stock, SkyTerra Non-Voting Common Stock or SkyTerra Preferred
Stock, other than issuances where (x) the aggregate gross proceeds of all such
issuances do not exceed $125 million, (y) such securities are sold for no less
than 90% of market value, and (z) such issuance does not result in any Person
holding more than 40% of any class of SkyTerra capital stock increasing
their percentage ownership of SkyTerra by virtue of participation in such
issuance. Notwithstanding the foregoing, SkyTerra shall be permitted to enter
into and consummate transactions (including the issuance of shares of SkyTerra
Common Stock) with TMI Communications and Company, LP (“TMI”) and/or MSV’s
directors, management and employees to acquire, directly or indirectly, their
MSV LP Units and MSV GP Shares or options to acquire such securities; provided
that the terms and conditions of such transactions (including the exchange
ratios) shall be no more favorable to TMI and/or MSV’s directors, management
and employees than those applicable to Motient in this Agreement.

 

(c)                                  From the date hereof until such time
as no Additional SkyTerra Shares may be purchased pursuant to this
Agreement, SkyTerra shall not take any action to amend the MSV Documents in a
manner that would interfere with Motient’s ability to exchange

 

24

 

its Retained
MSV Interests for Additional SkyTerra Shares at Subsequent Closings in
accordance with the terms hereof.

 

Section 4.11                                Tag
Along Rights. Simultaneously with the Initial Closing, SkyTerra shall
accept for purchase all MSV LP Units and MSV GP Shares properly tendered by the
Limited Partners in accordance with Section 8.2(b) of the MSV
Stockholders’ Agreement at the Tag Along Price (as defined in the MSV
Stockholders’ Agreement) and in compliance with applicable laws and such
purchase shall not reduce the MSV Interests to be sold by Sub pursuant to this
Agreement.

 

Section 4.12                                Subsequent
TerreStar Tag-Along Rights.

 

(a)                                  For a period of 15 days following
the Initial Closing (the “Subsequent
Tag Along Period”), Motient shall allow the members of
MSV Investors (or, solely in the case of Bay Harbour MSV, Inc., the
stockholders of such members) other than SkyTerra (the “MSV
Investors Minority Holders”) who hold shares of common stock of
TerreStar Networks, Inc. (“TerreStar
Common Stock”) that are distributed by MSV Investors to
them prior to the Initial Closing (“Distributed
TerreStar Shares”) to exchange their Distributed
TerreStar Shares at the same exchange ratio (as appropriately adjusted for any
stock split, combination, reorganization, recapitalization, reclassification,
stock dividend, stock distribution or similar event declared or effected prior
to the expiration of the Subsequent Tag Along Period) and upon the same terms
and conditions (including but not limited to investment representations and
warranties by such MSV Investors Minority Holders sufficient to establish a
private placement exemption for such offer and sale of Motient Common Stock by
Motient) as Motient has agreed to exchange shares of Motient Common Stock for
shares of TerreStar Common Stock under the Fund Exchange Agreements (including
any registration rights contemplated thereby). This tag-along right may be
exercised by each MSV Investors Minority Holder for its Distributed TerreStar
Shares by delivery of a written notice to Motient (the “Tag Along Notice”)
within the Subsequent Tag Along Period. The Tag Along Notice shall state the
number of Distributed TerreStar Shares that such holder wishes to exchange for
shares of Motient Common Stock. Upon the giving of a Tag Along Notice, such MSV
Investors Minority Holder shall be entitled and obligated to exchange the
number of Distributed TerreStar Shares set forth in the Tag Along Notice, on
the terms and conditions set forth in the Fund Exchange Agreements, and Motient
and such MSV Investors Minority Holder shall enter into an agreement relating
thereto in substantially the form of the Fund Exchange Agreements.

 

(b)                                 For the Subsequent Tag Along Period,
Motient shall allow SkyTerra to exchange its Distributed TerreStar Shares at
the same exchange ratio (as appropriately adjusted for any stock split,
combination, reorganization, recapitalization, reclassification, stock
dividend, stock distribution or similar event declared or effected prior to the
expiration of the Subsequent Tag Along Period) and upon the same terms and
conditions as Motient has agreed to exchange shares of Motient Common Stock for
shares of TerreStar Common Stock under the Fund Exchange Agreements; provided
that (i) SkyTerra shall be obligated to distribute the shares of Motient
Common Stock that it receives for such Distributed TerreStar Shares as a pro
rata dividend to the holders of SkyTerra Non-Voting Common Stock and SkyTerra
Common Stock, the record date for which dividend shall be after the Initial
Closing hereunder, and shall only dispose of such shares of Motient Common
Stock through such dividend and to Motient at

 

25

 

Subsequent
Closings hereunder pursuant to the terms hereof, (ii) Motient shall grant
registration rights to SkyTerra with respect to such dividend on terms
substantially similar to the registration rights granted by SkyTerra to Motient
hereunder and under the Registration Rights Agreement with respect to the
Distribution Registration Statement, and (iii) prior to distribution of
such shares, SkyTerra shall agree to cause any shares of Motient Common Stock
that it receives pursuant to this Section 4.12(b) to be voted at any meeting
of stockholders and in connection with any action by written consent, pro rata
with all other votes cast at such meeting (or by written consent) by the other
holders of Motient Common Stock. This tag-along right may be exercised by
SkyTerra for its Distributed TerreStar Shares by delivery of a Tag Along Notice
to Motient within the Subsequent Tag Along Period. The Tag Along Notice shall
state the number of Distributed TerreStar Shares that SkyTerra wishes to
exchange for shares of Motient Common Stock. Upon the giving of a Tag Along
Notice, SkyTerra shall be entitled and obligated to exchange the number of
Distributed TerreStar Shares set forth in the Tag Along Notice, on the terms
and conditions set forth in the Fund Exchange Agreements and subject to the
other provisions of this Section 4.12(b), and Motient and SkyTerra
shall enter into an agreement relating thereto in substantially the form of
the Fund Exchange Agreements (with such changes as required by this Section 4.12(b)).

 

ARTICLE V

 

CONDITIONS TO INITIAL CLOSING OF
SKYTERRA

 

The obligation of SkyTerra to purchase the MSV Interests from Sub, and
to issue the SkyTerra Shares to Motient, at the Initial Closing is subject to
the fulfillment to SkyTerra’s satisfaction (unless waived by SkyTerra) on or
prior to the Initial Closing Date of each of the following conditions:

 

Section 5.1                                      Representations
and Warranties. Each representation and warranty made by Motient and Sub in
Article II above shall be true and correct in all material respects on and
as of the Initial Closing Date as though made as of the Initial Closing Date,
except that any such representation and warranty that is given as of a
particular date or period and relates solely to such particular date or period
shall be true and correct in all material respects only as of such date or
period, provided, however, that any representations and warranties which by
their terms are qualified by materiality which shall be true and correct in all
respects, with the same force and effect as if such representation and warranty
had been made on and as of the Initial Closing Date.

 

Section 5.2                                      Performance.
All covenants, agreements and conditions contained in this Agreement to be
performed or complied with by Motient and Sub on or prior to the Initial
Closing Date shall have been performed or complied with by Motient or Sub, as
applicable, in all respects.

 

Section 5.3                                      Registration
Rights Agreement. Motient shall have entered into the Registration Rights
Agreement.

 

26

 

Section 5.4                                      Opinion
of Motient’s Counsel. SkyTerra shall have received at the Initial Closing
from Andrews Kurth LLP and Richards Layton & Finger, counsel to
Motient, an opinion in substantially the form attached as Exhibit E
hereto dated as of the Initial Closing Date.

 

Section 5.5                                      Certificates
and Documents. Motient shall have delivered at or prior to the Initial
Closing to SkyTerra the Motient Initial Closing Deliveries.

 

Section 5.6                                      Compliance
Certificate. Motient shall have delivered to SkyTerra or its counsel a
certificate signed by the Chief Executive Officer of Motient, dated the Initial
Closing Date, certifying to the fulfillment of the conditions specified in
Sections 5.1 and 5.2 above.

 

Section 5.7                                      Final
Order of FCC. All necessary FCC approvals shall have been obtained without
the imposition on SkyTerra of any material adverse conditions and such
approvals shall have become Final Orders and shall be in full force and effect,
provided that SkyTerra may waive the condition that the approvals have
become Final Orders. For the purpose of this Agreement, “Final Order” means an
action by the FCC that has not been reversed, stayed, enjoined, set aside,
annulled or suspended within forty days after being obtained.

 

Section 5.8                                      HSR
Approval. All applicable waiting periods under the HSR Act shall have
expired or early termination of such waiting periods will have been granted.

 

Section 5.9                                      Intentionally
Omitted.

 

Section 5.10                                Effective
Registration Statements. Both the Distribution Registration Statement and
the Preferred Registration Statement shall have become effective and no stop
order with respect thereto shall be in effect and no proceedings for that
purpose shall have been commenced or threatened by the SEC.

 

Section 5.11                                MSV
Investors, LLC and other MSV Members. SkyTerra shall have entered into binding
agreements to acquire (x) all of the equity of MSV Investors, LLC not currently
owned, directly or indirectly, by SkyTerra and (y) 100% of the MSV LP Units and
MSV GP Shares held by the Columbia/Spectrum Blocker Corporations, in each case,
such acquisition to occur no later than one day after the Initial Closing Date.

 

Section 5.12                                Intentionally
Omitted.

 

Section 5.13                                Exchange
of SkyTerra Non-Voting Common Stock. All shares of SkyTerra Non-Voting
Common Stock shall have been exchanged (or will be exchanged substantially
contemporaneously with the Initial Closing) for SkyTerra Common Stock on a
one-for-one basis in compliance with that certain Investment Agreement dated as
of April 2, 2002, and no shares of SkyTerra Non-Voting Common Stock
outstanding as of the date hereof or to be issued in the Rights Offering shall
be outstanding, other than the shares of SkyTerra Non-Voting Common Stock to be
issued to Motient.

 

Section 5.14                                FIRPTA
Certificate. Sub shall have furnished SkyTerra an affidavit certifying as
to Sub’s non-foreign status in accordance with the requirements of Section 1.1445-2(b) of
the Internal Revenue Service Treasury Regulations.

 

27

 

ARTICLE VI

 

CONDITIONS TO INITIAL CLOSING OF
MOTIENT AND SUB

 

The obligation of Motient to purchase the SkyTerra Shares from
SkyTerra, and to transfer the MSV Interests to SkyTerra, at the Initial Closing
is subject to the fulfillment to Motient’s satisfaction (unless waived by
Motient) on or prior to the Initial Closing Date of each of the following
conditions:

 

Section 6.1                                      Representations
and Warranties. Each representation and warranty made by SkyTerra in Article III
above shall be true and correct in all material respects on and as of the
Initial Closing Date as though made as of the Initial Closing Date, except that
any such representation and warranty that is given as of a particular date or
period and relates solely to such particular date or period shall be true and
correct in all material respects only as of such date or period, provided,
however, that any representations and warranties which by their terms are
qualified by materiality which shall be true and correct in all respects, with
the same force and effect as if such representation and warranty had been made
on and as of the Initial Closing Date.

 

Section 6.2                                      Performance.
All covenants, agreements and conditions contained in this Agreement to be
performed or complied with by SkyTerra on or prior to the Initial Closing Date
shall have been performed or complied with by SkyTerra in all respects.

 

Section 6.3                                      Registration
Rights Agreement. SkyTerra shall have entered into the Registration Rights
Agreement.

 

Section 6.4                                      Opinion
of Company’s Counsel. Motient shall have received at the Initial Closing
from Skadden, Arps, Slate, Meagher & Flom LLP, counsel to SkyTerra, an
opinion in substantially the form attached as Exhibit F hereto
dated as of the Initial Closing Date.

 

Section 6.5                                      Certificates
and Documents. SkyTerra shall have delivered at or prior to the Initial
Closing to Motient the SkyTerra Initial Closing Deliveries.

 

Section 6.6                                      Compliance
Certificate. SkyTerra shall have delivered to Motient or its counsel a
certificate signed by the Chief Executive Officer of SkyTerra, dated the
Initial Closing Date, certifying to the fulfillment of the conditions specified
in Sections 6.1 and 6.2 above.

 

Section 6.7                                      Rights
Offering and Conversion of SkyTerra Preferred Stock. The Rights Offering
shall have been completed and no shares of SkyTerra Preferred Stock shall be
outstanding.

 

Section 6.8                                      FCC
Approval. All necessary FCC approvals shall have been obtained and shall be
in full force and effect.

 

Section 6.9                                      HSR
Approval. All applicable waiting periods under the HSR Act shall have
expired or early termination of such waiting periods will have been granted.

 

28

 

Section 6.10                                Effective
Registration Statements. Both the Distribution Registration Statement and
the Preferred Registration Statement shall have become effective and no stop
order with respect thereto shall be in effect and no proceedings for that
purpose shall have been commenced or threatened by the SEC.

 

Section 6.11                                MSV
Investors, LLC and other MSV member. SkyTerra shall have entered into
binding agreements to acquire (x) all of the equity of MSV Investors, LLC not
currently owned, directly or indirectly, by SkyTerra and (y) 100% of the MSV LP
Units and MSV GP Shares held by the Columbia/Spectrum Blocker Corporations, in
each case, such acquisition to occur no later than one day after the Initial
Closing Date.

 

Section 6.12                                Intentionally
Omitted.

 

Section 6.13                                Board
of Directors. One director proposed by Motient and acceptable to SkyTerra
in its sole and absolute discretion shall have been appointed to the SkyTerra
board of directors effective as of the Initial Closing and the board of
directors of SkyTerra shall consist of no more than seven (7) persons.

 

Section 6.14                                Intentionally
Omitted.

 

Section 6.15                                Cash
Balance. SkyTerra
and its subsidiaries (but not including MSV or TerreStar for these purposes)
shall have an aggregate cash balance of not less than $1, net of any
indebtedness for borrowed money.

 

ARTICLE VII

 

RETAINED MSV INTERESTS

 

Section 7.1                                      Option.

 

(a)                                  SkyTerra hereby grants to Motient
the irrevocable right and option, exercisable in Motient’s sole and absolute
discretion, at any time and from time to time following the Initial Closing
Date but prior to the fifth anniversary of the Initial Closing Date (each, an “Option Date” and together, the “Option
Dates”), to exchange, or to cause the exchange of, (i) that
number of the Retained MSV Interests as determined in Motient’s sole discretion
for (ii) the number of the Additional SkyTerra Shares in accordance with
the Subsequent Closing Exchange Ratio;

 

(b)                                 Motient hereby grants to SkyTerra
the irrevocable right and option, exercisable at any time on or after a
SkyTerra Change of Control (as defined below), to exchange, or to cause the
exchange of, (i) all, and not less than all, of the remaining Retained MSV
Interests for (ii) all, and not less than all, of the remaining Additional
SkyTerra Shares; provided, however, that this right shall only be exercisable
in the event that the Preferred Registration Statement is effective at the time
such right would otherwise be exercisable by SkyTerra. A “SkyTerra Change of Control” shall be deemed to occur
upon (A) the acquisition of SkyTerra by another entity by means of any
transaction or series of related transactions (including, without
limitation, any reorganization, merger or consolidation) unless SkyTerra’s
stockholders of record as constituted immediately prior to such acquisition or
sale will, immediately after such

 

29

 

acquisition or
sale (by virtue of securities issued as consideration for SkyTerra’s
acquisition or sale or otherwise) hold at least 50% of the voting power,
directly or indirectly, of the surviving or acquiring entity (except that the
sale by SkyTerra of shares of its capital stock to financial investors in bona
fide financing transactions shall not be deemed a SkyTerra Change of Control
for this purpose); (B) a sale or transfer of all or substantially all of
the assets of SkyTerra to a third party, including a sale or transfer of all or
substantially all of the assets of SkyTerra’s subsidiaries, if such assets
constitute substantially all of the assets of SkyTerra and such subsidiaries
taken as a whole, unless SkyTerra’s stockholders of record as constituted
immediately prior to such sale will, immediately after such sale (by virtue of
securities issued as consideration for SkyTerra’s sale or otherwise) hold at
least 50% of the beneficial ownership or voting power; or (C) if any
person or group of related persons (as defined in Rule 13(d) of the
Exchange Act) shall become the beneficial owner (as defined in Rule 13d-3
under the Exchange Act) of shares representing more than 50% of the aggregate
ordinary voting power represented by the issued and outstanding voting stock of
SkyTerra, unless SkyTerra’s stockholders of record as constituted immediately
prior to such acquisition or sale will, immediately after such acquisition hold
at least 50% of the voting power, directly or indirectly, of the acquiring
entity or group; provided, however, the receipt by Motient of
shares of SkyTerra Non-Voting Common Stock and any exchange of such shares for
SkyTerra Common Stock shall not be deemed to be a SkyTerra Change of Control.

 

(c)                                  Unless all Additional SkyTerra
Shares and Retained MSV Interests shall have been previously exchanged, the
option shall be deemed to be exercised with respect to all remaining Retained
MSV Interests not previously exchanged on May 6, 2021; provided, however,
that the consideration paid for such Retained MSV Interests at such closing
shall be a number of shares of SkyTerra Common Stock then equal in fair market
value to the then fair market value of the Retained MSV Interests.

 

Section 7.2                                      Exercise
and Closing of Option.

 

(a)                                  The options granted under Section 7.1
above shall be exercisable by delivery of written notice (the “Option Exercise Notice”), from Motient to SkyTerra or
SkyTerra to Motient, as the case may be, except in the case of Section 7.1(c),
in which case the Option Exercise Notice shall be deemed to have been delivered
on May 6, 2021. If the Option Exercise Notice is delivered from Motient to
SkyTerra, the Option Exercise Notice shall include the number of Additional
SkyTerra Shares to be issued that shall be distributed by Motient to the
Motient Preferred Stockholders and the number of Additional SkyTerra Shares to
be sold by Motient pursuant to an effective registration statement filed with
the SEC or pursuant to an exemption from registration.

 

(b)                                 Subject to Section 7.2(c), a
Subsequent Closing of the transactions described in Section 7.1 above
shall occur on a date (each, a “Subsequent Closing Date”)
not more than two business days after the delivery of an Option Exercise
Notice.

 

(c)                                  The obligations of the parties to
consummate each Subsequent Closing shall be subject to the satisfaction or
waiver (in whole or in part, in writing, by the party in whose favor the
condition must be satisfied for purposes of consummating such transactions) on
or before the applicable Subsequent Closing Date of each of the following conditions:

 

30

 

(i)             No law or order shall have been
enacted by any Governmental Entity to enjoin, restrain or prohibit this
Agreement or the transaction contemplated hereby, if such law or order would
make it unlawful to consummate such transactions;

 

(ii)          The representations and warranties
of Motient and Sub set forth in Article II and the representations and
warranties of SkyTerra set forth in Section 3.1, Section 3.2(b), Section 3.3,
Section 3.4 and Sections 3.18 through 3.22 and Sections 3.24 and 3.25,
shall be true and correct in all material respects as of the applicable
Subsequent Closing Date as though such representations and warranties were then
made (unless compliance with any such representations and warranties are waived
by the other party), and each party shall have delivered to the other party an
officer’s certificate to the effect that such condition is satisfied in all
respects; and

 

(iii)       Motient shall have delivered the
Motient Subsequent Closing Deliveries, and SkyTerra shall have delivered the
SkyTerra Subsequent Closing Delivery.

 

ARTICLE VIII

 

INDEMNIFICATION

 

Section 8.1                                      Survival
of Representations and Warranties. The warranties and representations of
Motient, Sub and SkyTerra contained in this Agreement shall survive the
execution and delivery of this Agreement and the Initial Closing for a period
of twelve (12) months following such Initial Closing (the “Initial Closing Survival Period”), and the warranties
and representations of Motient and Sub contained in this Agreement and the
warranties and representations of SkyTerra contained in Section 3.1, Section 3.2(b),
Section 3.3, Section 3.4 and Sections 3.18 through 3.22 and Sections
3.24 and 3.25 of this Agreement with respect to a Subsequent Closing shall
survive such Subsequent Closing for a period of twelve (12) months following
such Subsequent Closing (each, a “Subsequent Closing Survival
Period” and, together with the Initial Closing Survival Period,
a “Survival Period”), and in
each case shall in no way be affected by any investigation of the subject
matter thereof made by any party hereto; provided that the representations and
warranties contained in Section 2.13 and 3.23 shall survive indefinitely
and the sole remedy (except in the case of fraud or where specific performance
is sought) for breaches of the representations and warranties contained in Section 2.13
and 3.23 shall be provided in the Registration Rights Agreement. The covenants
and agreements shall survive the Initial Closing in accordance with their
terms.

 

Section 8.2                                      Obligation
to Indemnify.

 

(a)                                  SkyTerra Obligation to Indemnify. From and after the Initial
Closing, SkyTerra shall indemnify, defend and hold harmless Motient, Sub and
their respective officers, directors, stockholders, partners, employees,
subsidiaries, agents and affiliates (each, a “Motient
Indemnitee”), from and against all losses, claims, damages,
liabilities, obligations, fines, penalties, judgments, settlements, costs,
expenses and disbursements (including attorneys’,

 

31

 

accountants’
and investigatory fees and expenses) (collectively, “Losses”)
to the extent resulting from any (i) breach or inaccuracy of any
representation or warranty of SkyTerra contained in this Agreement for which a
claim is initiated prior to the expiration of the applicable Survival Period or
(ii) non-fulfillment or breach of any covenant or agreement of SkyTerra
contained in this Agreement.

 

(b)                                 Motient’s Obligation to Indemnify. From and after the Initial Closing
Date, Motient and Sub, jointly and severally, shall indemnify, defend and hold
harmless SkyTerra and its officers, directors, stockholders,  partners, employees, agents and affiliates
(each, a “SkyTerra Indemnitee”) from
and against any and all Losses to the extent resulting from any (i) breach
or inaccuracy of any representation or warranty of Motient or Sub contained in
this Agreement for which a claim is initiated prior to the expiration of the
applicable Survival Period or (ii) non-fulfillment or breach of any
covenant or agreement of Motient or Sub contained in this Agreement.

 

(c)                                  Indemnification Basket Amount. Notwithstanding the foregoing, an
Indemnifying Party (as defined below) shall not be required to indemnify an
Indemnified Party (as defined below) pursuant to Section 8.2(a) or
Section 8.2(b), as applicable, unless and until the amount of all
Losses incurred by such Indemnified Party exceeds $5,000,000 in the aggregate
(the “Basket Amount”), in which
case the Indemnifying Party shall be required to indemnify the Indemnified
Party for any and all such Losses in excess of the Basket Amount; provided that
with respect to Section 6.15, the Basket Amount shall be
$2,000,000; provided further, however, that the limitation set forth in this Section 8.2(c) shall
not apply to Losses resulting from a breach of the representations and
warranties set forth in Sections 2.2 or 3.2(b).

 

Section 8.3                                      Indemnification
Procedures.

 

(a)                                  The person seeking indemnification
hereunder (each, an “Indemnified Party”)
shall give the party or parties from whom indemnification is sought or to be
sought (each, an “Indemnifying Party”) prompt
written notice of any Loss as to which they have received written notification.
If an indemnification claim involves a claim by a third party (a “Third Party Claim”), the Indemnified Party shall
promptly notify the Indemnifying Party thereof in writing; provided, however,
that no delay on the part of the Indemnified Party in notifying the
Indemnifying Party shall relieve the Indemnifying Party from any obligation
hereunder unless (and then solely to the extent) the Indemnifying Party is
actually and materially prejudiced thereby. An Indemnifying Party shall have
ten business days from the delivery of such notice (the “Notice Response Period”) to notify the Indemnified Party
whether or not it disputes its liability to the Indemnified Party hereunder
with respect to such claim or demand. If an Indemnifying Party disputes its
liability to an Indemnified Party hereunder with respect to such claim or
demand or the amount thereof, such dispute shall be resolved by a civil action
in a court of appropriate jurisdiction (including as part of any
proceeding with respect to the claim that gave rise to the indemnification
claim to which such dispute relates) which may be commenced by either
party. During the Notice Response Period, no such claim or demand may be
settled by the Indemnified Party.

 

(b)                                 With respect to each Indemnification
Matter (as defined below), the Indemnified Parties will have the sole right and
authority to control the defense against any Third

 

32

 

Party Claim
with one counsel of their collective choice. This right shall include the right
to settle or resolve the Third Party Claim by entering into an agreement
memorializing the terms of settlement or resolution (a “Settlement Agreement”), provided however, that the
Indemnified Party provides the Indemnifying Party with notice (in accordance
with Section 8.4 hereof) of its intent to enter into a Settlement
Agreement, which notice shall include the proposed terms of the Settlement
Agreement. The Indemnifying Party shall, within ten business days of receipt of
such notice, have the right to reject the proposed Settlement Agreement, but
shall do so only if it reasonably determines that the Settlement Agreement does
not represent a bona fide and reasonable resolution of the underlying Third
Party Claim. The Indemnifying Party (and any Indemnified Party who is not
otherwise satisfied with the one counsel chosen by the Indemnified Parties
collectively) may retain separate co-counsel at their sole cost and
expense and participate in the defense of the Third Party Claim; provided,
however, that in no event may any Indemnifying Party consent to the entry
of any judgment, enter into any settlement with respect to the Third Party
Claim or agree with any Person other than the Indemnified Party, to take any
other action with respect to the Third Party Claim without the prior written consent
of the Indemnified Party . If it is determined pursuant to an order or
Settlement Agreement that an Indemnifying Party is responsible for all or a
portion of any amounts for which the Indemnified Party is liable as a result of
such Third Party Claim hereunder, the Indemnifying Party shall, pursuant to Section 8.4(b),
render payment to the Indemnified Party for all Losses resulting from such
claim, subject to the provisions of Section 8.5.

 

Section 8.4                                      Notices
and Payments.

 

With respect to each separate matter which is subject to
indemnification under this Article VIII (each, an “Indemnification Matter”):

 

(a)                                  Notice. Upon the Indemnified Party’s
receipt of written documents pertaining to an Indemnification Matter, or, if
the Indemnification Matter does not involve a third party demand or claim,
within a reasonable time after the Indemnified Party first has actual knowledge
of such Indemnification Matter, the Indemnified Party shall give written notice
to the Indemnifying Party of the nature of such Indemnification Matter, and, if
susceptible to estimation at such time, the Indemnified Party’s best estimate
of the amount demanded or claimed in connection therewith as provided in Section 8.3;
provided, however, that no delay on the part of the Indemnified Party in
notifying the Indemnifying Party shall relieve the Indemnifying Party from any
obligation hereunder unless (and then solely to the extent) the Indemnifying
Party is actually and materially prejudiced thereby.

 

(b)                                 Payment. Upon determination of the amount
of the Loss (whether due to the Indemnifying Party’s failure to dispute the
indemnification matter, by agreement among the parties, or after a settlement
agreement is executed or a final order is rendered with respect to the
indemnification matter), the Indemnifying Party shall promptly (and in any
event, not later than ten days after such determination) pay to the Indemnified
Party all amounts owing by the Indemnifying Party under this Article VIII
with respect to such indemnification matter, subject to the limitations set
forth in Section 8.5.

 

33

 

Section 8.5                                      Limited
Remedy.

 

(a)                                  Motient Indemnitee Indemnification
Limit. Except
in the case of fraud or where specific performance is sought, the maximum
amount all Motient Indemnitees may recover in the aggregate pursuant to
the indemnity set forth in Section 8.2(a) hereof with respect
to a Closing shall be limited to the value of the shares of SkyTerra Common
Stock into which the shares of SkyTerra Non-Voting Common Stock to be purchased
at such Closing may be exchanged based on the average of the high and low
sales price for the five trading day period immediately prior to, and
including, the Closing Date (plus the value of any additional property required
to be provided to Motient pursuant to Section 4.10(a) hereof
at such Closing, if any).

 

(b)                                 SkyTerra Indemnitee Indemnification
Limit. Except
in the case of fraud or where specific performance is sought, the maximum
amount all SkyTerra Indemnitees may recover in the aggregate pursuant to
the indemnity set forth in Section 8.2(b) hereof with respect
to a Closing shall be limited to the value of the shares of SkyTerra Common
Stock into which the shares of SkyTerra Non-Voting Common Stock to be purchased
at such Closing may be exchanged based on the average of the high and low
sales price for the five trading day period immediately prior to, and
including, the Closing Date  (plus the
value of any additional property required to be provided to Motient pursuant to
Section 4.10(a) hereof at such Closing, if any).

 

ARTICLE IX

 

MISCELLANEOUS

 

Section 9.1                                      Termination.
This Agreement may be terminated prior to the Initial Closing as follows:

 

(i)             at any time on or prior to the
Initial Closing Date, by mutual written consent of Motient and SkyTerra;

 

(ii)          at the election of Motient or
SkyTerra by written notice to the other parties hereto after 5:00 p.m.,
New York time, on December 31, 2006, if the Initial Closing shall not have
occurred, unless such date is extended by the mutual written consent of Motient
and SkyTerra; provided, however, that the right to terminate this Agreement
pursuant to this clause (ii) shall not be available to a party whose
failure or whose affiliate’s failure to perform or observe in any material
respect any of its obligations under this Agreement in any manner shall have
been the principal cause of or resulted in the failure of the Initial Closing
to occur on or before such date;

 

(iii)       at the election of Motient, if there
has been a material breach of any representation, warranty, covenant or
agreement on the part of SkyTerra contained in this Agreement, which
breach has not been cured within fifteen (15) days of notice to SkyTerra of
such breach; or

 

(iv)      at the election of SkyTerra, if there
has been a material breach of any representation, warranty, covenant or
agreement on the part of Motient contained in this Agreement, which breach
has not been cured within fifteen (15) days notice to Motient of such breach.

 

34

 

Section 9.2                                      Survival.
If this Agreement is terminated and the transactions contemplated hereby are
not consummated as described above, this Agreement shall become void and of no
further force and effect, except for the provisions of this Section 9.2
and Sections 9.3 through 9.15 (inclusive); provided, however,
that (a) none of the parties hereto shall have any liability in respect of
a termination of this Agreement pursuant to Section 9.1(i), or Section 9.1(ii),
(b) nothing shall relieve any of the parties from liability for actual
damages resulting from a breach of any representation, warranty, covenant or
agreement which gave rise to a termination of this Agreement pursuant to Section 9.1(iii) or
9.1(iv).

 

Section 9.3                                      Expenses.
Whether or not the transactions contemplated hereby are consummated, all costs
and expenses incurred in connection with this Agreement and the transactions
contemplated hereby and thereby shall be paid by the party incurring such
expenses.

 

Section 9.4                                      Counterparts;
Effectiveness. This Agreement may be executed in two or more
consecutive counterparts, each of which shall be an original, with the same
effect as if the signatures thereto and hereto were upon the same instrument,
and shall become effective when one or more counterparts have been signed by
each of the parties and delivered (by facsimile or otherwise) to the other
parties.

 

Section 9.5                                      Governing
Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York without regard to the principles of conflicts
of laws thereof.

 

Section 9.6                                      Notices.
Any notices, reports or other correspondence (hereinafter collectively referred
to as “correspondence”) required or permitted to be given hereunder shall be
given in writing and shall be deemed given three business days after the date
sent by certified or registered mail (return receipt requested), one business
day after the date sent by overnight courier or on the date given by facsimile
(with confirmation of receipt) or delivered by hand, to the party to whom such
correspondence is required or permitted to be given hereunder.

 

To Motient or
Sub:

 

Motient
Corporation

300 Knightsbridge Parkway

Lincolnshire Parkway

Lincolnshire, IL 60069

Facsimile: (847) 478-4810

Attention:  General Counsel

 

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

 

Andrews Kurth
LLP

600 Travis Street, Suite 4200

Houston, Texas 77002

Facsimile: (713) 220-4285

Attention:  Mark Young

 

35

 

To SkyTerra:

 

SkyTerra
Communications, Inc.

19 West 44th Street, Suite 507

New York, New York 10036

Facsimile:

Attn:                    Robert
C. Lewis

 

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

 

Skadden, Arps,
Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036

Facsimile: (917) 777-2918

Attn:                    Gregory
A. Fernicola, Esq.

 

Section 9.7                                      Assignment;
Binding Effect. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties hereto without
the prior written consent of the other parties. Subject to the preceding
sentence, this Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and their respective successors and assigns.

 

Section 9.8                                      Severability.
Any term or provision of this Agreement which is invalid or unenforceable in
any jurisdiction shall, as to that jurisdiction, be ineffective to the extent
of such invalidity or unenforceability without rendering invalid or
unenforceable the remaining terms and provisions of this Agreement in any other
jurisdiction. If any provision of this Agreement is so broad as to be
unenforceable, such provision shall be interpreted to be only so broad as is
enforceable.

 

Section 9.9                                      Entire
Agreement; Non-Assignability; Parties in Interest. This Agreement and the
documents and instruments and other agreements specifically referred to herein
or delivered pursuant hereto, including the Exhibits and the SkyTerra
Disclosure Schedule: (a) constitute the entire agreement among the parties
with respect to the subject matter hereof and supersede all prior agreements
and understandings, both written and oral, among the parties with respect to
the subject matter hereof, including, without limitation, the Letter of Intent
dated September 22, 2005, between Motient, SkyTerra, TMI and the Other MSV
Shareholders (as defined in such Letter of Intent); (b) are not intended
to confer upon any other person (except the Motient Indemnitees and the
SkyTerra Indemnitees and, solely with respect to Section 4.12 hereof, the
MSV Investors Holders) any rights or remedies hereunder and (c) shall not
be assigned by operation of law or otherwise except as otherwise specifically
provided. Without limiting the foregoing, no party shall be deemed to have made
any representation or warranty other than as expressly made herein.

 

Section 9.10                                Headings.
Headings of the Articles and Sections of this Agreement are for convenience of
the parties only, and shall be given no substantive or interpretive effect
whatsoever.

 

36

 

Section 9.11                                Certain
Definitions. References in this Agreement to “subsidiaries”
of SkyTerra or Motient shall mean any corporation or other form of legal
entity of which more than 50% of the outstanding voting securities are on the
date hereof directly or indirectly owned by SkyTerra or Motient, as the case may be.
References in this Agreement (except as specifically otherwise defined) to “affiliates”
shall mean, as to any person, any other person which, directly or indirectly,
controls, or is controlled by, or is under common control with, such person. As
used in this definition, “control” (including, with its correlative meanings, “controlled
by” and “under common control with”) shall mean the possession, directly or
indirectly, of the power to direct or cause the direction of management or
policies of a person, whether through the ownership of securities or
partnership of other ownership interests, by contract or otherwise. References
in the Agreement to “person” shall mean an individual, a corporation, a
partnership, an association, a trust or any other entity or organization,
including, without limitation, a Governmental Entity. “Antitrust Laws” means the HSR Act, the
Sherman Act, as amended, the Clayton Act, as amended, the Federal Trade
Commission Act, as amended, and any other United States federal or state or
foreign statutes, rules, regulations, orders, decrees, administrative or
judicial doctrines or other laws that are designed to prohibit, restrict or
regulate actions having the purpose or effect of monopolization or restraint of
trade.

 

Section 9.12                                Amendments
and Waivers. Any term of this Agreement may be amended and the
observance of any term of this Agreement may be waived (either generally
or in a particular instance and either retroactively or prospectively), only
with the written consent of each of the parties hereto.

 

Section 9.13                                Specific
Performance. The parties to this Agreement agree that irreparable damage
would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. Accordingly,
the parties to this Agreement hereby agree that each party hereto shall be
entitled to an injunction or injunctions to prevent breaches of this Agreement
and to enforce specifically the terms and provisions of this Agreement in any
court of the United States or any state having jurisdiction, in addition to any
other remedy to which such party may be entitled at law or in equity.

 

Section 9.14                                Exclusive
Jurisdiction. Any suit, action or proceeding seeking to enforce any
provision of, or based on any matter arising out of or in connection with, this
Agreement or the transactions contemplated hereby may only be brought in
any federal or state court located in the County and State of New York, and
each of the parties hereby consents to the exclusive jurisdiction of such
courts (and of the appropriate appellate courts therefrom) in any such suit,
action or proceeding and irrevocably waives, to the fullest extent permitted by
law, any objection which it may now or hereafter have to the laying of the
exclusive venue of any such suit, action or proceeding in any such court or
that any such suit, action or proceeding which is brought in any such court has
been brought in an inconvenient forum. Process in any such suit, action or
proceeding may be served on any party anywhere in the world, whether
within or without the jurisdiction of any such court. Without limiting the
foregoing, each party agrees that service of process on such party as provided
in Section 9.6 shall be deemed effective service of process on such party.

 

Section 9.15                                Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY

 

37

 

LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

[Signature
Pages Follow]

 

38

 

IN WITNESS WHEREOF, the parties hereto have caused this Exchange
Agreement to be duly executed and delivered as of the date first above written.

 

	
   

  	
  MOTIENT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher Downie

  
	
   

  	
   

  	
  Name:

  	
  Christopher
  Downie

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

    Chief Operating Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  MOTIENT VENTURES HOLDING INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher Downie

  
	
   

  	
   

  	
  Name:

  	
  Christopher
  Downie

  
	
   

  	
   

  	
  Title:

  	
  Executive
  Vice President and

  
	
   

  	
   

  	
   

  	
    Chief
  Operating Officer

  
	
   

  	
   

  
	
   

  	
  SKYTERRA COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey
  A. Leddy

  
	
   

  	
   

  	
  Name:

  	
  Jeffrey A. Leddy

  
	
   

  	
   

  	
  Title:

  	
  Chief Executive Officer

  
					

 

[Signature
Page to Exchange Agreement]

 

 

Exhibit A

 

Form of
Amendment No. 2 to the TerreStar Networks Inc. Stockholders’ Agreement

 

A-1

 

Exhibit B

 

Form of
Amended and Restated TerreStar Networks Inc. Stockholders’ Agreement

 

B-1

 

Exhibit C

 

Form of Amendment
No. 3 to the Amended and Restated Stockholders’ Agreement of

Mobile Satellite Ventures GP, Inc.

 

C-1

 

Exhibit D

 

Form of
Registration Rights Agreement

 

 

D-1

 

form of REGISTRATION RIGHTS AGREEMENT

 

This REGISTRATION RIGHTS
AGREEMENT (this “Agreement”),
dated as of                  ,
is by and between Motient Corporation, a Delaware corporation (“Motient”), and
SkyTerra Communications, Inc., a Delaware corporation (“SkyTerra”). Certain
capitalized terms used herein are defined in Section 7 below. Capitalized
terms not otherwise defined herein have the meaning ascribed to them in the MSV
Exchange Agreement (as hereinafter defined).

 

RECITALS:

 

WHEREAS, Motient, MVH
Holdings Inc., a Delaware corporation and wholly owned subsidiary of
Motient  (“MVH”), and SkyTerra have entered into an
Exchange Agreement, dated as of May 6, 2006 (the “MSV Exchange Agreement”),
that provides, subject to the terms and conditions thereof, for the purchase by
SkyTerra of 100% of the limited partnership units (the “MSV LP Units”) of
Mobile Satellite Ventures, LP, a Delaware limited partnership (“MSV”)  and common stock of Mobile Satellite Ventures
GP, Inc., a Delaware corporation and the general partner of MSV (“MSV GP Shares”), held
directly by MVH (the “MSV
Exchange”);

 

WHEREAS, as part of
the consideration to be paid in the MSV Exchange, SkyTerra will issue an
aggregate of 44,333,417 shares (the “Acquired
Shares”) of non-voting common stock, par value $0.01 per share
of SkyTerra, exchangeable in certain circumstances for an equal number of
shares of common stock, par value $0.01 per share, of SkyTerra (“Common Shares”)
pursuant to Section 4.7 of the MSV Exchange Agreement;

 

WHEREAS, in order to
induce Motient to consummate the transactions under the MSV Exchange Agreement,
SkyTerra has agreed to provide certain registration rights on the terms and
subject to the conditions set forth herein; and

 

WHEREAS, it is a condition
to the closing of the transactions under the MSV Exchange Agreement that
SkyTerra and Motient enter into this Agreement;

 

NOW, THEREFORE, the
parties hereto hereby agree as follows:

 

SECTION 1.                            REGISTRATION UNDER THE SECURITIES
ACT.

 

1.1                     Registration.

 

(a)                                  As promptly as
possible after the date hereof, and in any event prior to the date that is ten (10) business
days following the date hereof, SkyTerra shall prepare and file with the
Securities and Exchange Commission (the “SEC”) a registration statement on the
appropriate form for the purpose of registering under the Securities Act
14,407,343 of the Common Shares (as appropriately adjusted in accordance with
the MSV Exchange Agreement) (the “Resale Shares”)
for resale by Motient (the “Resale Registration Statement”). SkyTerra agrees to use
its commercially reasonable efforts to cause the Resale Registration Statement
to be declared effective as soon as practicable after the filing thereof with
the SEC.

 

(b)                                 SkyTerra shall keep
the Resale Registration Statement effective (including through the filing of
any required post-effective amendments) until the earlier to occur of (i) such

 

 

time as Motient has sold all of the Common Shares registered thereunder
or (ii) July 15, 2010; provided, that such date shall be extended by
the amount of time of any period during which Motient may not use the
Resale Registration Statement as the result of the occurrence of an event
described in Section 1.2(e) (ii), (iii) or (iv) below.
Thereafter, SkyTerra shall be entitled to withdraw the Resale Registration
Statement and, upon such withdrawal, Motient shall have no further right to
sell any of the Common Shares pursuant to the Resale Registration Statement (or
any prospectus forming a part thereof).

 

(c)                                  Pursuant to Section 1.3(b)(ii) of
the MSV Exchange Agreement, SkyTerra has filed a registration statement on Form S-3
(File No. 333-          )
with the SEC registering under the Securities Act 25,478,273 of the Common
Shares (as appropriately adjusted in accordance with the MSV Exchange
Agreement) for distribution by Motient as a dividend to the Motient Common
Stockholders (the “Distribution Registration Statement”). The
Distribution Registration Statement was declared effective by the SEC on
                      ,
2006.

 

(d)                                 Pursuant to Section 1.3(b)(iii) of
the MSV Exchange Agreement, SkyTerra has filed a registration statement on Form S-3
(File No. 333-          )
with the SEC registering under the Securities Act 4,447,801 of the Common
Shares (as appropriately adjusted in accordance with the MSV Exchange
Agreement) for distribution by Motient to the holders of Motient’s Series A
Cumulative Convertible Preferred Stock and Series B Cumulative Convertible
Preferred Stock upon the election by the holders of such shares to convert such
shares of Motient preferred stock into shares of Motient Common Stock (the “Preferred Registration Statement”
and, together with the Distribution Registration Statement and the Resale
Registration Statement, the “Registration Statements”). The Preferred Registration
Statement was declared effective by the SEC on
                      ,
2006. The registrations effected pursuant to the Registration Statements are
referred to herein as the “Registrations.”

 

(e)                                  SkyTerra shall keep
the (i) Distribution Registration Statement effective (including through
the filing of any required post-effective amendments) until such time as
Motient declares and pays the dividend of the Common Shares to the Motient
Common Stockholders referenced in the Distribution Registration Statement and (ii) Preferred
Registration Statement effective (including through the filing of any required
post-effective amendments) until the earlier to occur of (A) the date
after which all of the Common Shares registered thereunder shall have been
distributed by Motient to its preferred stockholders and (B) July 15,
2010; provided, that such date shall be extended by the amount of time of any
period during which Motient may not use the Preferred Registration
Statement as the result of the occurrence of an event described in Section 1.2(e) (ii),
(iii) or (iv) below. Thereafter, SkyTerra shall be entitled to
withdraw the Distribution Registration Statement and the Preferred Registration
Statement, as applicable, and, upon such withdrawal, Motient shall have no
further right to distribute any of the Common Shares pursuant to the
Distribution Registration Statement or Preferred Registration Statement (or any
prospectus forming a part thereof), as applicable.

 

1.2                               Registration Procedures.
Subject to the terms and conditions hereof, whenever any Common Shares are
required to be registered pursuant to this Agreement or were required to be
registered pursuant to the MSV Exchange Agreement, SkyTerra shall use its
commercially reasonable efforts to effect the registration (if not previously
effected) and the sale or distribution of

 

2

 

such Common Shares (if not
previously sold or distributed) in accordance with the intended method of
disposition thereof, and pursuant thereto SkyTerra shall as expeditiously as
practicable:

 

(a)                                  promptly
prepare and file with the SEC the applicable registration statement with
respect to such Common Shares (and any amendments, including any post-effective
amendments or supplements to such registration statement SkyTerra deems to be
necessary) and use its commercially reasonable efforts to cause such
registration statement to become effective and to comply with the provisions of
the Securities Act applicable to it; provided, that before filing a
registration statement or prospectus or any amendments or supplements thereto,
SkyTerra shall furnish to counsel for Motient copies of all such documents
proposed to be filed, including documents incorporated by reference in the
registration statement and, if requested by Motient, the exhibits incorporated
by reference so as to provide Motient and its counsel a reasonable opportunity
to review and comment on such documents, and SkyTerra (i) will make such
changes and additions thereto as reasonably requested by counsel to Motient
prior to filing any registration statement or amendment thereto or any
prospectus or any supplement thereto and (ii) if Motient is an underwriter
or controlling person of SkyTerra, to include therein material relating to
Motient or the plan of distribution for the Common Shares registered
thereunder, furnished to SkyTerra in writing, which, in the reasonable judgment
of Motient, should be included;

 

(b)                                 furnish
to Motient such number of copies of such registration statement, each amendment
and supplement thereto, the prospectus included in such registration statement
and such other documents as Motient may reasonably request in order to
facilitate the disposition of such Common Shares registered thereunder; provided,
however, that SkyTerra shall have no obligation to furnish copies of a
final prospectus if the conditions of Rule 172(c) under the
Securities Act are satisfied by SkyTerra;

 

(c)                                  prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be
necessary to keep such registration statement with respect to such Common
Shares registered thereunder effective for the applicable time periods as
specified in Section 1.1 in order to complete the disposition of the
Common Shares covered by such registration statement and comply with the
provisions of the Securities Act with respect to the disposition of all Common
Shares covered by such registration statement during such period in accordance
with the intended methods of disposition thereof as set forth in such
registration statement;

 

(d)                                 use
its commercially reasonable efforts to register or qualify such Common Shares
under such other securities or blue sky laws of such jurisdictions as Motient
(or any other holder whose securities are included in a registration statement
on which Common Shares are registered) reasonably requests and do any and all
other acts and things which may be reasonably necessary or advisable to
enable Motient to consummate the disposition in such jurisdictions of the
Common Shares owned by Motient (provided that SkyTerra shall not be required to
(i) qualify generally to do

 

3

 

business in any jurisdiction where it would
not otherwise be required to qualify but for this subsection, (ii) subject
itself to taxation in any such jurisdiction or (iii) consent to general
service of process in any such jurisdiction);

 

(e)                                  notify
Motient, at any time when a prospectus relating thereto is required to be
delivered under the Securities Act, (i) when a registration statement or
any post-effective amendment has become effective under the Securities Act, (ii) of
any written request by the SEC for amendments or supplements to such
registration statement or prospectus, (iii) of the happening of any event
as a result of which the prospectus included in such registration statement
contains an untrue statement of a material fact or omits any fact necessary to
make the statements therein, in light of the circumstances under which they
were made, not misleading (whereupon Motient shall immediately cease any
offers, sales or other distribution of Common Shares registered thereunder),
and, subject to 1.3(c), SkyTerra shall promptly prepare a supplement or
amendment to such prospectus so that, as thereafter used by Motient for the
resale of the Common Shares or delivered to the stockholders of Motient in
connection with the distribution of such Common Shares, such prospectus shall
not contain an untrue statement of a material fact or omit to state any fact
necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading, and (iv) of the issuance of any stop
order suspending the effectiveness of a registration statement, or of any order
suspending or preventing the use of any related prospectus or suspending the
qualification of any of the Common Shares included in such registration
statement for sale or distribution in any jurisdiction;

 

(f)                                    in
the event of the issuance of any stop order suspending the effectiveness of a
registration statement, or of any order suspending or preventing the use of any
related prospectus or suspending the qualification of any Common Shares
included in such registration statement for sale or distribution in any
jurisdiction, SkyTerra shall use its commercially reasonable efforts promptly
to obtain the withdrawal of such order and shall prepare and file an amended or
supplemented prospectus, if required; and

 

(g)                                 provide
a transfer agent and registrar for all such Common Shares not later than the
effective date of such registration statement;

 

(h)                                 use
its commercially reasonable efforts to cause such Common Shares covered by such
registration statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable Motient
to complete the disposition of the Common Shares covered by such registration
statement and comply with the provisions of the Securities Act with respect to
the disposition of all Common Shares covered by such registration statement
during such period in accordance with the intended methods of disposition by
Motient thereof set forth in such registration statement;

 

(i)                                     make
available for inspection by Motient, any underwriter participating in any
disposition pursuant to such registration statement, and any attorney,
accountant or

 

4

 

other agent retained by Motient or
underwriter, all financial and other records, pertinent corporate documents and
properties of SkyTerra, and cause SkyTerra’s officers, managers, employees and
independent accountants to supply all information reasonably requested by
SkyTerra, underwriter, attorney, accountant or agent in connection with such
registration statement; and

 

(j)                                     make
generally available to its stockholders a consolidated earnings statement
(which need not be audited) for the 12 months beginning after the effective
date of such registration statement as soon as reasonably practicable after the
end of such period, which earnings statement shall satisfy the requirements of
an earning statement under Section 11(a) of the Securities Act.

 

1.3                               Other
Procedural Matters.

 

(a)                                  SEC Correspondence. SkyTerra shall make
available to Motient promptly after the same is prepared and publicly
distributed, filed with the SEC, or received by SkyTerra, one copy of each
registration statement and any amendment thereto, each preliminary prospectus
and each amendment or supplement thereto, each letter written by or on behalf
of SkyTerra to the SEC or the staff of the SEC (or other governmental agency or
self-regulatory body or other body having jurisdiction, including any domestic
or foreign securities exchange), in each case relating to such registration
statement. SkyTerra will promptly respond to any and all comments received from
the SEC, with a view towards causing each registration statement or any
amendment thereto to be declared effective by the SEC as soon as practicable
and shall file an acceleration request as soon as practicable following the
resolution or clearance of all SEC comments or, if applicable, following
notification by the SEC that any such registration statement or any amendment
thereto will not be subject to review.

 

(b)                                 SkyTerra
may require Motient to furnish to SkyTerra any other information regarding
Motient and the distribution of such securities, including without limitation
the plan of disposition of the Common Shares, as SkyTerra reasonably
determines, is required to be included in any registration statement.

 

(c)                                  Motient
agrees that, upon notice from SkyTerra of the happening of any event as a
result of which the prospectus included in such registration statement contains
an untrue statement of a material fact or omits any material fact necessary to
make the statements therein not misleading (a “Suspension Notice”), Motient will
forthwith discontinue disposition of Common Shares pursuant to such
registration statement until Motient is advised in writing by SkyTerra that the
use of the prospectus may be resumed and is furnished with a supplemented
or amended prospectus as contemplated by Section 1.2 hereof; provided,
however, that such postponement of sales of Common Shares by Motient
shall not in any event exceed (i) twenty (20) consecutive days or (ii) forty-five
(45) days in the aggregate in any 12 month period. If SkyTerra shall give
Motient any Suspension Notice, SkyTerra shall extend the period of time during
which SkyTerra is required to maintain the applicable registration statements
effective pursuant to this Agreement by the number of days

 

5

 

during the period from and including the date
of the giving of such Suspension Notice to and including the date Motient
either is advised by SkyTerra that the use of the prospectus may be
resumed. In any event, SkyTerra shall not be entitled to deliver more than a
total of three (3) Suspension Notices or notices of any Delay Period in
any 12 month period.

 

(d)                                 Neither
SkyTerra nor Motient shall permit any officer, manager, underwriter, broker or
any other person acting on behalf of SkyTerra to use any free writing
prospectus (as defined in Rule 405 under the Securities Act) in connection
with any registration statement covering Common Shares filed pursuant to the
Exchange Agreement or this Agreement, without the prior written consent of
SkyTerra, Motient and any underwriter.

 

1.4                               Expenses.

 

(a)                                  Registration Expenses. All Registration
Expenses shall be borne by SkyTerra.

 

(b)                                 Selling Expenses. All expenses incident to
Motient’s performance of or compliance with this Agreement, including, without
limitation, all fees and expenses of counsel for Motient, fees and expenses of
Motient’s transfer agent, and any broker or dealer discounts or commissions
attributable to the disposition of Common Shares shall be borne solely by
Motient.

 

SECTION 2.                            LOCKUP AGREEMENT.

 

2.1                               Except for the (i) disposition
of Common Shares by Motient to its stockholders pursuant to the Preferred
Registration Statement and (ii) the distribution by Motient of Common
Shares to holders of Motient common stock as described in Section 4.8 of
the MSV Exchange Agreement, Motient hereby agrees to not effect any public sale
or distribution (including any sales pursuant to Rule 144) of equity
securities of SkyTerra, or any securities convertible into or exchangeable or
exercisable for such securities, during the seven days prior to and the 90-day
period beginning on the effective date of any underwritten registered public
offering of equity securities of SkyTerra or securities convertible or
exchangeable into or exercisable for equity securities of SkyTerra (except as part of
such underwritten registration), unless the underwriters managing the
registered public offering otherwise consent in writing, and Motient will
deliver an undertaking to the managing underwriters (if requested) consistent
with this covenant. Motient shall not be obligated to comply with the
provisions of this Section 2.1 more than two times in any 12-month period.

 

SECTION 3.                            INDEMNIFICATION.

 

3.1                               Indemnification by
SkyTerra. SkyTerra
agrees to indemnify, to the extent permitted by law, Motient, its officers,
directors, employees and Affiliates and each Person who controls Motient
(within the meaning of the Securities Act) against all losses, claims, damages,
liabilities, and expenses caused by any untrue or alleged untrue statement of
material fact contained in any registration statement described in this
Agreement and/or the MSV Exchange Agreement, (including, without limitation,
the Distribution Registration Statement (as defined in the MSV Exchange
Agreement), the Resale Registration Statement and the Preferred Registration
Statement)

 

6

 

(each a “Transaction
Registration Statement”) or any prospectus forming a part of any such
Transaction Registration Statement or any “issuer free writing prospectus” (as
defined in Securities Act Rule 433), or any amendment thereof or
supplement thereto or any omission or alleged omission of a material fact
required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading or any
violation or alleged violation by SkyTerra of the Securities Act, the Exchange
Act or applicable “blue sky” laws, except insofar as the same are made in
reliance and in conformity with any information furnished in writing to
SkyTerra by Motient expressly for use therein or by the failure of Motient to
deliver a copy of such registration statement or prospectus or any amendments
or supplements thereto as required by law after SkyTerra has furnished Motient
with a sufficient number of copies of the same.

 

3.2                               Indemnification by
Motient. In
connection with any registration statement in which Motient is participating,
Motient shall furnish to SkyTerra in writing such information as SkyTerra
reasonably requests for use in connection with any such registration statement
or prospectus and, to the extent permitted by law, shall indemnify SkyTerra,
its directors, officers, employees and Affiliates, and each Person who controls
SkyTerra (within the meaning of the Securities Act), against any losses,
claims, damages, liabilities, and expenses resulting from any untrue or alleged
untrue statement of material fact contained in any Transaction Registration
Statement, the prospectus or preliminary prospectus forming a part of such
Transaction Registration Statement or any amendment thereof or supplement
thereto or any omission or alleged omission of a material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, but only to the
extent that any information so furnished in writing by Motient contains such
untrue statement or omits a material fact required to be stated therein
necessary to make the statements therein not misleading; provided, however,
that any such obligation of Motient to indemnify SkyTerra hereunder shall be
limited to (i) the net proceeds to Motient from the sale of the
Common Shares pursuant to the Resale
Registration Statement in the case of the Resale Registration Statement, and (ii) the
value of the Common Shares distributed pursuant to the Distribution
Registration Statement or the Preferred Registration Statement, as applicable, based
on the average of the high and low sales price of Common Shares for the five
trading day period immediately prior to the date of such distribution with respect to the Distribution Registration
Statement or the Preferred Registration Statement, as applicable.

 

3.3                               Indemnification
Procedures. Any
Person entitled to indemnification hereunder shall (i) give prompt written
notice to the indemnifying party of any claim with respect to which it seeks
indemnification (provided that the failure to give prompt notice shall not
impair any Person’s right to indemnification hereunder to the extent such
failure has not prejudiced the indemnifying party) and (ii) unless in such
indemnified party’s reasonable judgment a conflict of interest between such
indemnified and indemnifying parties may exist with respect to such claim,
permit such indemnifying party to assume the defense of such claim with counsel
reasonably satisfactory to the indemnified party. If such defense is assumed,
the indemnifying party shall not be subject to any liability for any settlement
made by the indemnified party without its consent (but such consent shall not
be unreasonably withheld). An indemnifying party who is not entitled to, or
elects not to, assume the defense of a claim shall not be obligated to pay the
fees and expenses of more than one counsel (in addition to local counsel) for
all parties indemnified by such indemnifying party with respect to such claim,
unless in the reasonable judgment of any indemnified party there may be
one

 

7

 

or more legal or equitable defenses available to such indemnified party
that are in addition to or may conflict with those available to another
indemnified party with respect to such claim. Failure to give prompt written
notice shall not release the indemnifying party from its obligations hereunder.

 

3.4                               Investigation;
Contribution. The
indemnification provided for under this Agreement shall remain in full force
and effect regardless of any investigation made by or on behalf of the
indemnified party or any officer, director, or controlling Person of such
indemnified party and shall survive the transfer of securities. If the
indemnification provided under Section 3.1 or Section 3.2 of this
Agreement is held by a court to be unavailable or unenforceable in
respect of any losses, claims, damages, liabilities or expenses referred to
herein, then each applicable indemnifying party, in lieu of indemnifying such
indemnified party, shall contribute to the amount paid or payable by such
indemnified Person as a result of such losses, claims, damages, liabilities or
expenses in such proportion as is appropriate to reflect the relative fault of
the indemnifying party on the one hand and of the indemnified party on the
other in connection with the statements or omissions that result in such
losses, claims, damages, liabilities or expenses as well as any other relevant
equitable considerations. The relative fault of the indemnifying party on the
one hand and of the indemnified Person on the other shall be determined by
reference to, among other things, whether the untrue or alleged untrue
statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by the indemnifying party or by
the indemnified party, and by such party’s relative intent, knowledge, access
to information and opportunity to correct or prevent such statement or
omission. In no event shall the liability of Motient for contribution pursuant
to this Section 3.4 be greater than the amount for which Motient would
have been liable pursuant to Section 3.2 had indemnification been
available and enforceable.

 

SECTION 4.                            RULE 144 TRANSACTIONS.

 

4.1                               Undertaking
to File Reports and Cooperate in Rule 144 Transactions. For as long as
Motient continues to hold or has the right under the MSV Exchange Agreement to
acquire any Acquired Shares, SkyTerra shall use its commercially reasonable efforts to file with the SEC,
on a timely basis, all annual, quarterly and other periodic reports required to
be filed by it under Sections 13 and 15(d) of the Exchange Act, and the rules and
regulations thereunder;
provided, however, that the foregoing shall not be construed to
require SkyTerra to prepare and file periodic reports if it is not required to
do so under the Exchange Act. In the event of any proposed sale by Motient of
Acquired Shares pursuant to Rule 144 under the Securities Act or otherwise
as provided herein, which sale is to be made in accordance with the terms of Section 5.1(d) hereof,
SkyTerra shall use its commercially reasonable efforts to cooperate with
Motient so as to enable such sales to be made in accordance with applicable
laws, rules and regulations, the requirements of the transfer agent of
SkyTerra, and the reasonable requirements of the broker through which the sales
are proposed to be executed, and shall, upon written request, furnish
unlegended certificates representing ownership of the shares of Common Shares
sold thereby, such certificates to be furnished in such numbers and
denominations as Motient may reasonably request.

 

SECTION 5.                            RESTRICTIONS ON TRANSFER.

 

5.1                               Permitted
Transfers. Motient
hereby agrees that, until it and any permitted transferees under paragraph (e) or
(h) hereunder have disposed of all of the Acquired Shares, it will

 

8

 

not, directly or indirectly, without the prior written consent of
SkyTerra, sell, distribute, transfer or otherwise dispose (in
each case, a “Disposition”) of any Acquired
Shares except:

 

(a)                                  the
pro rata distribution of Common Shares by Motient to its common stockholders in
the form of a special dividend as described by Section 4.8 of the MSV
Exchange Agreement; or

 

(b)                                 distributions
of Common Shares by Motient to its preferred stockholders pursuant to the Preferred
Registration Statement;

 

(c)                                  sales
of Resale Shares pursuant to the Resale Registration Statement; or

 

(d)                                 sales
of Resale Shares pursuant to Rule 144 under the Securities Act; or

 

(e)                                  sales
or transfers of Resale Shares to any Person or group of related Persons who
would immediately thereafter not own or have the right to acquire or vote with
respect to Resale Shares consisting of, in the aggregate, more than five
percent (5%) (with each Person, other than Affiliates of the transferring
Holder, considered individually and not in the aggregate with other
transferees) of the total combined voting power of all SkyTerra Common Shares
then outstanding; provided, however, that in each such case, the
transferee shall receive and hold such Resale Shares subject to, and the
transferee and all of the transferees’ Affiliates shall agree to be bound by,
all the terms of this Agreement, which terms shall also inure to the benefit of
such transferees, and there shall be no further transfer of such Resale Shares,
except in accordance with the provisions of this Section 5.1; or

 

(f)                                    a
bona fide pledge of or the granting of a security interest in the Resale Shares
or Resale Shares to an institutional lender for money borrowed, provided
that such lender acknowledges in writing that it has received a copy of this
Agreement and agrees, upon its becoming the owner of, or obtaining dispositive
authority with respect to or in connection with any disposition of, any such
Resale Shares, to be bound by the provisions of this Agreement in connection
with any right it may have to dispose of any such Resale Shares (and, upon
agreeing so to be bound, the provisions of this Agreement shall inure to the
benefit of such party); or

 

(g)                                 sales
or transfers of Resale Shares pursuant to a tender or exchange offer which the
Board of Directors of SkyTerra does not oppose within 10 business days after
the date of commencement (as such term is defined in Rule 14d-2(a) of
the General Rules and Regulations under the Exchange Act) of such offer; or

 

(h)                                 dispositions
of Resale Shares by Motient to any wholly owned subsidiary of Motient or to a
successor corporation of Motient; provided, however, that in each
such case, the transferee shall receive and hold such Resale Shares subject to,
and the transferee and all of the transferees’ Affiliates shall agree to be
bound by, all the terms of this Agreement, which terms shall also inure to the
benefit of such transferees, and there shall be no further transfer of such
Resale Shares for which they are exchangeable, except in accordance with the
provisions of this Section 5.1; or

 

9

 

(i)                                     dispositions
pursuant to any merger, consolidation, reorganization or recapitalization to
which SkyTerra is a party or in connection with any reclassification of the
Acquired Shares or the Common Shares;

 

provided, that in the event that Motient seeks to effect a
Disposition of any Resale Shares pursuant to clauses (d), (e) or
(h) of this Section 5.1, (i) such Disposition is made in
compliance with applicable securities laws, and (ii) prior to such
Disposition, Motient shall have delivered to SkyTerra an opinion of counsel
stating that such Disposition (A) is permitted by this Agreement and the
MSV Exchange Agreement, (B) does not require registration under the
Securities Act, and (C) assuming the accuracy of the representations and
warranties set forth in the MSV Exchange Agreement, does not cause the MSV
Exchange to be required to have been registered under the Securities Act; provided,
that with respect to Dispositions pursuant to Section 5.1(d), such opinion
shall only be required if requested by SkyTerra’s transfer agent and in any
event no opinion shall be required for Dispositions pursuant to
Rule 144(k) under the Securities Act.

 

SECTION 6.                            INTENTIONALLY OMITTED

 

SECTION 7.                            DEFINITIONS.

 

“Affiliate” means,
with respect to any specified Person, any other Person that,
directly or indirectly or through one or more intermediaries, controls, is
controlled by or is under common control with such specified Person.

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and
regulations thereunder, or any successor statute.

 

“Person” means any
individual, firm, partnership, corporation, trust, joint venture, limited
liability company, association, joint stock company, unincorporated
organization, or any other entity or organization, including a governmental
entity or any department, agency, or political subdivision thereof.

 

“Registration Expenses”
means all expenses incident to SkyTerra’s performance of or compliance with
this Agreement, including without limitation all registration and filing fees,
fees and expenses of compliance with securities or blue sky laws, fees with
respect to filings required to be made with the NASD, printing expenses,
messenger and delivery and mailing expenses, fees and disbursements of
custodians, and fees and disbursements of counsel for SkyTerra and all
independent certified public accountants retained by SkyTerra and other Persons
retained by SkyTerra.

 

“Securities Act” means
the Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any successor statute.

 

10

 

SECTION 8.                            MISCELLANEOUS.

 

8.1                               Legends and Stop Transfer Orders.

 

(a)                                  Motient
hereby agrees that all certificates representing Acquired Shares or the Common
Shares for which they are exchanged that are presently owned or are hereafter
acquired by Motient, shall have the following legend (or other legend to the
same effect): “The shares represented by this certificate are subject to
restrictions on transfer and other restrictions pursuant to the provisions of a
Registration Rights Agreement, dated May 6, 2006, between SkyTerra
Communications, Inc. and Motient Corporation, a copy of which is on file
at the office of the corporate secretary of Motient Corporation.”

 

(b)                                 Motient
hereby agrees to the entry of stop transfer orders with the transfer agent and
registrar of the Acquired Shares or the Common Shares for which they are
exchanged against the transfer (other than in compliance with this Agreement)
of legended securities held by Motient (or its permitted transferees under Section 5.1(e) or
(h) hereof).

 

(c)                                  SkyTerra
agrees to remove any stop transfer orders provided in paragraph (b) above
in sufficient time to permit any party to make any transfer permitted by the
terms of this Agreement.

 

8.2                               Consolidation or Merger of
SkyTerra.

 

For as long as
Motient continues to hold, or has the right under the MSV Exchange Agreement to
acquire, any Acquired Shares, if any of the following events (collectively, a “SkyTerra Change of Control”)
occurs, namely:

 

(a)                                  any
reclassification or exchange of the outstanding Common Shares (other than a
change in par value, or from par value to no par value, or from no par value to
par value, or as a result of a subdivision or combination);

 

(b)                                 any
merger, consolidation, statutory share exchange or combination of SkyTerra with
another corporation as a result of which holders of Common Shares shall be
entitled to receive stock or other securities with respect to or in exchange
for such Common Shares; or

 

(c)                                  any
sale or conveyance of the properties and assets of SkyTerra as, or
substantially as, an entirety to any other corporation as a result of which
holders of Common Shares shall be entitled to receive stock or other securities
with respect to or in exchange for such Common Shares;

 

SkyTerra shall enter into, or SkyTerra shall cause the successor or
purchasing corporation to enter into, as the case may be, an agreement
with Motient that provides Motient with substantially similar rights as
provided in this Agreement with respect to the stock or other securities to be
issued in the SkyTerra Change of Control transaction with respect to or in
exchange for the Acquired Shares and/or Common Shares.

 

11

 

8.3                               Specific
Performance. The
parties hereto acknowledge and agree that in the event of any breach of this
Agreement, the non-breaching parties would be irreparably harmed and could not
be made whole by monetary damages. It is accordingly agreed that the parties
hereto shall and do hereby waive the defense in any action for specific
performance that a remedy at law would be adequate and that the parties hereto,
in addition to any other remedy to which they may be entitled at law or in
equity, shall be entitled to compel specific performance of this Agreement in
any action instituted hereunder.

 

8.4                               Amendments and
Waivers. The
failure of any party to enforce any of the provisions of this Agreement shall
in no way be construed as a waiver of such provisions and shall not affect the
right of such party thereafter to enforce each and every provision of this
Agreement in accordance with its terms. No modification, amendment, or waiver
of any provision of this Agreement shall be effective against Motient or
SkyTerra except by a written agreement signed by Motient and SkyTerra.

 

8.5                               Successors and
Assigns. All
covenants and agreements in this Agreement by or on behalf of any of the
parties hereto shall bind and inure to the benefit of the respective successors
and permitted assigns of the parties hereto whether so expressed or not
including, without limitation, any Person which is the successor to Motient or
SkyTerra.

 

8.6                               Severability. If any term, provision, covenant or
restriction of this Agreement, or any part thereof, is held by a court of
competent jurisdiction or any foreign federal, state, county, or local
government or any other governmental, regulatory, or administrative agency or
authority to be invalid, void, unenforceable, or against public policy for any
reason, the remainder of the terms, provisions, covenants, and restrictions of
this Agreement shall remain in full force and effect and shall in no way be
affected, impaired, or invalidated.

 

8.7                               Entire Agreement. Except as otherwise expressly set
forth herein, this document embodies the complete agreement and understanding
among the parties hereto with respect to the subject matter hereof and
supersedes and preempts any prior understandings, agreements, or
representations by or among the parties, written or oral, which may have
related to the subject matter hereof in any way.

 

8.8                               Counterparts. This Agreement may be executed
in two or more counterparts, each of which shall be deemed an original, but all
of which shall constitute one and the same instrument, and it shall not be
necessary in making proof of this Agreement to produce or account for more than
one such counterpart.

 

8.9                               Headings. The headings in this Agreement are
for convenience of reference only and shall not limit or otherwise affect the
meaning of terms contained herein.

 

8.10                        GOVERNING LAW;
CONSENT OF EXCLUSIVE JURISDICTION; WAIVER OF JURY TRIAL. THIS AGREEMENT AND THE VALIDITY AND
PERFORMANCE OF THE TERMS HEREOF SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW OR CHOICE OF LAW. THE PARTIES HERETO HEREBY AGREE THAT ALL
ACTIONS OR PROCEEDINGS ARISING DIRECTLY OR

 

12

 

INDIRECTLY FROM OR IN
CONNECTION WITH THIS AGREEMENT SHALL BE LITIGATED ONLY IN THE STATE OR FEDERAL
COURTS LOCATED IN MANHATTAN IN THE STATE OF NEW YORK. TO THE EXTENT PERMITTED
BY APPLICABLE LAW, THE PARTIES HERETO CONSENT TO THE EXCLUSIVE JURISDICTION AND
VENUE OF THE FOREGOING COURTS AND CONSENT THAT ANY PROCESS OR NOTICE OF MOTION
OR OTHER APPLICATION TO EITHER OF SAID COURTS OR A JUDGE THEREOF MAY BE
SERVED INSIDE OR OUTSIDE THE STATE OF NEW YORK BY REGISTERED MAIL, RETURN
RECEIPT REQUESTED, DIRECTED TO SUCH PARTY AT ITS ADDRESS SET FORTH IN THIS
AGREEMENT (AND SERVICE SO MADE SHALL BE DEEMED COMPLETE FIVE (5) DAYS
AFTER THE SAME HAS BEEN POSTED AS AFORESAID) OR BY PERSONAL SERVICE OR IN SUCH
OTHER MANNER AS MAY BE PERMISSIBLE UNDER THE RULES OF SAID COURTS.
THE PARTIES HERETO HEREBY WAIVE ANY RIGHT TO A JURY TRIAL IN CONNECTION WITH
ANY LITIGATION PURSUANT TO THIS AGREEMENT.

 

8.11                        Notices. Any
notices, reports or other correspondence (hereinafter collectively referred to
as “correspondence”)
required or permitted to be given hereunder shall be given in writing and shall
be deemed given three business days after the date sent by certified or
registered mail (return receipt requested), one business day after the date
sent by overnight courier or on the date given by telecopy (with confirmation
of receipt) or delivered by hand, to the party to whom such correspondence is
required or permitted to be given hereunder.

 

To Motient:

 

Motient
Corporation

300 Knightsbridge Parkway

Lincolnshire Parkway

Lincolnshire, IL 60069

Facsimile: (847) 478-4810

Attention:  General Counsel

 

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

 

Andrews Kurth
LLP

600 Travis Street, Suite 4200

Houston, Texas 77002

Telecopy: (713) 238-7111

Attention:  Mark Young

 

To SkyTerra:

 

SkyTerra
Communications, Inc.

19 West 44th Street, Suite 507

New York, New York 10036

Facsimile:

Attn:                    Robert
C. Lewis

 

13

 

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

 

Skadden, Arps,
Slate, Meagher & Flom LLP

Four Times Square

New York, New York 10036

Facsimile: (917) 777-2918

Attn:                    Gregory
A. Fernicola, Esq.

 

14

 

IN
WITNESS WHEREOF, the parties hereto have executed this Registration Rights
Agreement on the day and year first above written.

 

	
   

  	
  SKYTERRA
  COMMUNICATIONS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
  MOTIENT
  CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

15

 

Exhibit E

 

Form of
Opinion of Andrews Kurth LLP

 

 

E-1

 

Matters to be Addressed by Andrews Kurth LLP

Legal Opinions for MSV Exchange Agreement

 

1.     Motient is validly existing as a
corporation and in good standing under the General Corporation Law of the State
of Delaware (the “DGCL”). Sub is validly existing as a corporation and
in good standing under the DGCL.

 

2.     Motient has the corporate power and
authority under the DGCL to execute and deliver, and incur and perform all of
its obligations under, the Transaction Agreements. Sub has the corporate power
and authority under the DGCL to execute and deliver, and incur and perform all
of its obligations under, the Exchange Agreement.

 

3.     The Transaction Agreements have been duly
authorized, executed and delivered by each Opinion Entity party thereto.

 

4.     Neither the execution and delivery by
Motient or Sub of the Transaction Agreements to which they are a party, nor the
performance by Motient and Sub of their respective obligations thereunder in
accordance with the terms thereof, will (A) constitute a violation of the
Certificate of Incorporation or the Sub Certificate of Incorporation, as
applicable, (B) constitute a violation of the Bylaws or the Sub Bylaws, as
applicable, (C) constitute a violation of, or a breach or default under, the
terms of any Applicable Contract, or (D) result in any violation of (i) the
DGCL or (ii) the applicable laws of the State of New York.

 

5.     The Transaction Agreements constitute valid
and binding obligations of each Opinion Entity party thereto, enforceable
against such Opinion Entity in accordance with their respective terms under the
applicable laws of the State of New York.

 

6.     No Governmental Approval, which has not
been obtained or taken and is not in full force and effect, is required to
authorize, or is required in connection with the execution or delivery by
Motient or Sub of, the Transaction Agreements or the performance by Motient and
Sub of their respective obligations under the Transaction Agreements to which
they are parties in accordance with the terms thereof. “Governmental Approval” means any consent, approval, license,
authorization or validation of, or filing, recording or registration with, any
executive, legislative, judicial, administrative or regulatory body required
to be made or obtained by Motient or Sub
of the State of New York, the State of Delaware or the United States of
America, pursuant to (i) applicable laws of the State of New York, (ii)
applicable laws of the United States of America or (iii) the DGCL, other
than any consent, approval, license, authorization, validation, filing,
recording or registration that may have become applicable as a result of the
involvement of any party (other than Motient or Sub) in the transactions
contemplated by the Exchange Agreement or because of any such party’s legal or
regulatory status or because of any other facts specifically pertaining to such
parties.

 

7.     Assuming that SkyTerra acquires “control”
(within the meaning of subsections (a) or (b) of Section 8-106 of the Uniform
Commercial Code of the State of New York  (the “New York UCC”)
in the State of New York of the MSV LP Unit Certificate and the MSV GP Share

 

 

Certificate
without notice of any adverse claim (within the meaning of Section 8-105 of the
New York UCC), upon delivery of such certificates to SkyTerra in the State of
New York, SkyTerra will acquire its rights to the MSV LP Units and the MSV GP
Shares, free of adverse claim.

 

 

Exhibit F

 

Form of
Opinion of Skadden, Arps, Slate, Meagher & Flom LLP

 

F-1

 

Matters to be Addressed by Skadden, Arps, Slate,
Meagher & Flom LLP

Legal Opinions for MSV Exchange Agreement

 

1.                                       SkyTerra
is validly existing in good standing under the laws of the State of Delaware.

 

2.                                       SkyTerra
has the corporate power and corporate authority to execute and deliver and to
perform all its obligations under each of the Transaction Documents and to
consummate the transactions contemplated thereby.

 

3.                                       Each
of the Transaction Documents has been duly authorized, executed and delivered
by SkyTerra and is a valid and binding agreement of SkyTerra, enforceable
against SkyTerra in accordance with its terms.

 

4.                                       The
execution and delivery by SkyTerra of each of the Transaction Documents and the
consummation by SkyTerra of the transactions contemplated thereby will not (i) conflict
with the Certificate of Incorporation or Bylaws, (ii) constitute a
violation of, or a breach or default under, the terms of any Applicable
Contract or (iii) violate or conflict with, or result in any contravention
of, any Applicable Law or any Applicable Order. We do not express any opinion,
however, as to whether the execution, delivery or performance by SkyTerra of
each of the Transaction Documents will constitute a violation of, or a default
under, any covenant, restriction or provision with respect to financial ratios
or tests or any aspect of the financial condition or results of operations of
SkyTerra or any of its subsidiaries.

 

5.                                       No
Governmental Approval, which has not been obtained or taken and is not in full
force and effect, is required to authorize, or is required for, the execution
or delivery of each of the Transaction Documents by SkyTerra or the
consummation by SkyTerra of the transactions contemplated thereby.

 

6.                                       The
SkyTerra Shares have been duly authorized by SkyTerra and, when delivered to
and paid for by Sub in accordance with the terms of the Exchange Agreement,
will be validly issued, fully paid and nonassessable.

 

7.                                       The
44,333,417 shares of SkyTerra Common Stock issuable upon the exchange of the
SkyTerra Shares pursuant to Section 4.7 of the Exchange Agreement have
been duly authorized by SkyTerra and, when in exchange for SkyTerra Shares in
accordance with the terms of the Exchange Agreement, will be validly issued,
fully paid and nonassessable.

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