Document:

Micromem Technologies Inc.: Exhibit 4.6 - Prepared by TNT Filings Inc.

 

  EXHIBIT 4.6

  

  MICROMEM TECHNOLOGIES INC.

  

  AMENDED AND RESTATED DIRECTORS, OFFICERS AND EMPLOYEES 

  STOCK OPTION PLAN

  

  

  

  

  

  

  

  

  

 

  EXHIBIT 4.6

   

  MICROMEM TECHNOLOGIES INC.

  

  AMENDED AND RESTATED DIRECTORS, OFFICERS AND EMPLOYEES 

  STOCK OPTION PLAN

  

  1.

  PURPOSE OF THE PLAN

 

  1.1

  The purpose of the Plan is to attract, retain and motivate persons with the required training, experience and leadership as directors, officers, employees and key service providers of the Corporation and its Subsidiaries and to advance the interests of the Corporation by providing such persons with the opportunity, through share options, to acquire an increased proprietary interest in the Corporation.  This Plan shall serve to amend
  and restate the Corporation's 2001 Stock Option Plan which was approved by shareholders on March 14, 2001.

  2.

  DEFINED TERMS

 

  Where used herein, the following terms shall have the following meanings, respectively:

  2.1

  "Board" shall mean the board of directors of the Corporation;

  

  2.2

  "Corporation" means Micromem Technologies Inc.;

  

  2.3

  "Eligible Person" means:

  

  (i)

  any director, officer or employee of the Corporation or any Subsidiary, or any
  other Service Provider (an "Eligible Individual"); or

  

  (ii)

  a corporation of which an Eligible Individual is an employee or shareholder
  (an "Employee Corporation");

  

  2.4

  "Insider" means any insider, as such term is defined in Subsection 1(1) of the Securities Act (Ontario), of the Corporation;

  

  2.5

  "Market Price" at any date in respect of the Shares means the closing sale price of the Shares on the OTC Bulletin Board (or other stock exchange on which the Shares are listed and posted for trading from time to time as may be selected for such purpose by the Board) on the trading day immediately preceding such date.  In the event that the Shares did not trade on such trading day, the Market Price shall be the average of the
  bid and ask prices in respect of the Shares at the close of trading on such trading day.  In the event that the Shares are not listed and posted for trading on any stock exchange or quotation system, the Market Price shall be the fair market value of the Shares as determined by the Board in its sole discretion;

  

  2.6

  "Option" means an option to purchase Shares granted to an Eligible Person under the Plan;

  

  2.7

  "Option Price" means the price per Share at which Shares may be purchased under an Option, as the same may be adjusted from time to time in accordance with Article 8 hereof;

  

  2.8

  "Optioned Shares" means the Shares issuable pursuant to an exercise of Options;

  

  2.9

  "Optionee" means an Eligible Person to whom an Option has been granted and who continues to hold such Option;

  

  2.10

  "Plan" means this Micromem Technologies Inc. Stock Option Plan, as the same may be further amended or varied from time to time;

 

 

  2.11

  "Service Provider" means:

  

  (i)

  an employee or Insider of the Corporation or any Subsidiary; or

  

  (ii)

  any other person or company engaged to provide ongoing management or consulting services for the Corporation or for any entity controlled by the Corporation;

  

  2.12

  "Shares" means the common shares of the Corporation or, in the event of an adjustment contemplated by Article 8 hereof, such other shares or securities to which an Optionee may be entitled upon the exercise of an Option as a result of such adjustment; and

  

  2.13

  "Subsidiary" means any corporation which is a subsidiary, as such term is defined in Subsection 1(2) of the Business Corporations Act (Ontario), of the Corporation.

  

  3.

  ADMINISTRATION OF THE PLAN

  

  3.1

  The Plan shall be administered by the Board.

  

  3.2

  The Board shall have the power, where consistent with the general purpose and intent of the Plan and subject to the specific provisions of the Plan:

  

  (a)

  to establish policies and to adopt rules and regulations for carrying out the purposes, provisions and administration of the Plan;

  

  (b)

  to interpret and construe the Plan and to determine all questions arising out of the Plan or any Option, and any such interpretation, construction or determination made by the Board shall be final, binding and conclusive for all purposes;

  

  (c)

  to determine the number of Shares covered by each Option;

  

  (d)

  to determine the Option Price of each Option;

  

  (e)

  to determine the time or times when Options will be granted and exercisable;

  

  (f)

  to determine if the Shares which are issuable on the exercise of an Option will be subject to any restrictions upon the exercise of such Option; and

  

  (g)

  to prescribe the form of the instruments relating to the grant, exercise and other terms of the Options.

  

  3.3

  The Board may, in its discretion, require as conditions to the grant or exercise of any Option that the Optionee shall have:

  

  (a)

  represented, warranted and agreed in form and substance satisfactory to the Corporation that he or she is acquiring and will acquire such Option and the Shares to be issued upon the exercise thereof or, as the case may be, is acquiring such Shares, for his or her own account, for investment and not with a view to or in connection with any distribution, that he or she has had access to such information as is necessary to enable him or
  her to evaluate the merits and risks of such investment and that he or she is able to bear the economic risk of holding such Shares for an indefinite period;

  

  (b)

  agreed to restrictions on transfer in form and substance satisfactory to the Corporation and to an endorsement on any option agreement or certificate representing the Shares making appropriate reference to such restrictions (including any notation required by any securities regulatory authority, stock exchange or trading facility having jurisdiction); and

 

  2

 

  

  (c)

  agreed to indemnify the Corporation in connection with the foregoing.

  

  3.4

  Any Option granted under the Plan shall be subject to the requirement that, if at any time counsel to the Corporation shall determine that the listing, registration or qualification of the Shares subject to such Option upon any securities exchange or under any law or regulation of any jurisdiction, or the consent or approval of any securities exchange or any governmental or regulatory body, is necessary as a condition of, or in
  connection with, the grant or exercise of such Option or the issuance or purchase of Shares thereunder, such Option may not be accepted or exercised in whole or in part unless such listing, registration, qualification, consent or approval shall have been effected or obtained on conditions acceptable to the Board.  Nothing herein shall be deemed to require the Corporation to apply for or to obtain such listing, registration,
  qualification, consent or approval.

  

  3.5

  This Plan shall be read and interpreted consistently with all applicable laws, rules, regulations and policies of any securities regulatory authority, stock exchange or trading facility having jurisdiction and, to the extent of any inconsistency between the terms of this Plan and the provisions of such laws, rules, regulations and policies, the provisions of such laws, rules, regulations and policies shall prevail.

  

  4.

  SHARES SUBJECT TO THE PLAN

  

  Options may be granted in respect of authorized and unissued Shares, provided that the aggregate number of Shares reserved for issuance upon the exercise of all Options granted under the Plan, subject to any adjustment of such number pursuant to the provisions of Article 8 hereof, shall not exceed 12.4 million or such greater number of Shares as may be determined by the Board and approved, if required, by the shareholders of the
  Corporation and by any relevant stock exchange or other regulatory authority (including shares issuable pursuant to options previously granted and that are outstanding under the 2001 Stock Option Plan).  Optioned Shares in respect of which Options are not exercised shall be available for subsequent Options. No fractional Shares may be purchased or issued under the Plan.

  

  5.

  ELIGIBILITY; GRANT; TERMS OF OPTIONS

  

  5.1

  Options may be granted to any Eligible Person in accordance with this Article 5.

  

  5.2

  Options may be granted by the Corporation to the extent that they have been approved by the Board.

  

  5.3

  Subject as herein and otherwise specifically provided in this Article 5, the number of Shares subject to each Option, the Option Price of each Option, the expiration date of each Option, the extent to which each Option is exercisable from time to time during the term of the Option and other terms and conditions relating to each such Option shall be determined by the Board or a director or officer of the Corporation designated by the
  Board to make such determination.

  

  5.4

  Each Option granted under this Plan shall be exercisable for a maximum period of ten (10) years from the date the Option is granted to the Optionee.  Subject to this section 5.4, the Board shall, at the time of granting an Option, determine the time or times when an Option or a part of an Option shall be exercisable.

  

  5.5

  Subject to any adjustments pursuant to the provisions of Article 8 hereof, the Option Price of any Option shall in no circumstances be lower than the Market Price on the date on which the grant of the Option is approved by the Board unless otherwise permitted under applicable laws, rules and regulations and the rules of any stock exchange or trading facility through which the Shares may be traded from time to time.  If, as and when
  any Shares have been duly purchased and paid for under the terms of an Option, such Shares shall be conclusively deemed allotted and issued as fully paid non-assessable Shares at the price paid therefore.

  

  5.6

  An Option is personal to the Optionee and non-assignable (whether by operation of law or otherwise), except as provided for herein.  Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of an Option contrary to the provisions of the Plan, or upon the levy of any attachment or similar process upon an Option, the Option shall, at the election of the Corporation, cease and terminate and be of no further force or
  effect whatsoever.

  3

 

  

  6.

  TERMINATION OF EMPLOYMENT, DEATH

  

  6.1

  Subject to Sections 6.2 and 6.3 hereof and to any express resolution passed by the Board with respect to an Option, an Option and all rights to purchase Shares pursuant thereto shall expire and terminate immediately upon the Optionee who holds such Option ceasing to be an Eligible Person.

  

  6.2

  If, before the expiry of an Option in accordance with the terms thereof, an Optionee shall cease to be an Eligible Person (an
  "Event of Termination") for any reason other than the termination for "cause" of his or her employment with the Corporation or any Subsidiary then the Optionee may:

  

  (a)

  exercise the Option to the extent that he or she was entitled to do so at the time of such Event of Termination, at any time up to and including, but not after, the forty-fifth (45th) day after the date of such Event of Termination, or prior to the close of business on the expiration date of the Option, whichever is earlier; and

  

  (b)

  with the prior written consent of the Board, which consent may be withheld arbitrarily in the Corporation's sole discretion, exercise any part of the Option which was not exercisable at the time of the occurrence of the Event of Termination at any time up to and including, but not after, the ninetieth (90th) day after the date of such Event of Termination, or prior to the close of business on the expiration date of the
  Option, whichever is earlier, to purchase all or any of the Optioned Shares as the Board may designate but not exceeding the number of Optioned Shares the Optionee would have otherwise been entitled to purchase pursuant to the Option had the Optionee's status as an Eligible Person been maintained for the term of the Option.

  

  6.3

  If an Optionee dies before the expiry of an Option in accordance with the terms thereof, the Optionee's legal representative(s) may, subject to the terms of the Option and the Plan:

  

  (a)

  exercise the Option to the extent that the Optionee was entitled to do so at the date of his or her death at any time up to and including, but not after, the date which is one year after the date of death of the Optionee, or prior to the close of business on the expiration date of the Option, whichever is earlier; and

  

  (b)

  with the prior written consent of the Board, exercise at any time up to and including, but not after, the date which is one year after the date of death of the Optionee, or prior to the close of business on the expiration date of the Option, whichever is earlier, any part of the Option which was not exercisable at the time of the Optionee's death to purchase all or any of the Optioned Shares as the Board may designate but not
  exceeding the number of Optioned Shares the Optionee would have otherwise been entitled to purchase had the Optionee survived.

  

  6.4

  For greater certainty, Options shall not be affected by any change of employment of the Optionee or by the Optionee ceasing to be a director of the Corporation provided that the Optionee continues to be an Eligible Person.

  

  6.5

  For the purposes of this Article 6, a determination by the Corporation that an Optionee was discharged for
  "cause" shall be binding on the Optionee; provided, however, that such determination shall not be conclusive of the Optionee's potential entitlement to damages for the loss of the right to exercise an Option in the event that a court of competent jurisdiction ultimately determines that the discharge was without
  "cause".

  

  6.6

  If the Optionee is an Employee Corporation, the references to the Optionee in this Article 6 shall be deemed to refer to the Eligible Individual associated with the Employee Corporation.

 

  4

 

  

  6.7

  If an Optionee has been terminated "for cause" or does not exercise his or her options in accordance with the provisions of sections 6.2 or 6.3 as the case may be, the number of options not exercised shall be added to the number of options remaining available to be granted under the Plan.

  

  7.

  EXERCISE OF OPTIONS

  

  7.1

  Subject to the provisions of the Plan, an Option may be exercised from time to time by delivery to the Corporation at its registered office of a written notice of exercise addressed to the Secretary of the Corporation specifying the number of Shares with respect to which the Option is being exercised and accompanied by payment in full, by cash or certified cheque, of the Option Price of the Shares then being purchased. Certificates
  for such Shares shall be issued and delivered to the Optionee within a reasonable time following the receipt of such notice and payment.

  

  7.2

  Notwithstanding any of the provisions contained in the Plan or in any Option, the Corporation's obligation to issue Shares to an Optionee pursuant to the exercise of any Option shall be subject to:

  

  (a)

  completion of such registration or other qualification of such Shares or obtaining approval of such governmental or regulatory authority as the Corporation shall determine to be necessary or advisable in connection with the authorization, issuance or sale thereof;

  

  (b)

  the admission of such Shares to listing on any stock exchange on which the Shares may then be listed;

  

  (c)

  the receipt from the Optionee of such representations, warranties, agreements and undertakings, as the Corporation determines to be necessary or advisable in order to safeguard against the violation of the securities laws of any jurisdiction; and

  

  (d)

  the satisfaction of any conditions on exercise prescribed pursuant to Section 3.4 hereof.

  

  7.3

  Options shall be evidenced by a share option agreement, instrument or certificate in such form not inconsistent with this plan as the Board may from time to time determine as provided for under Subsection 3.2 (g), provided that the substance of Article 5 be included therein.

  

  8.

  CERTAIN ADJUSTMENTS

  

  8.1

  In the event of any subdivision or redivision of the Shares into a greater number of Shares at any time after the grant of an Option to any Optionee and prior to the expiration of the term of such Option, the Corporation shall deliver to such Optionee at the time of any subsequent exercise of his or her Option in accordance with the terms hereof, in lieu of the number of Shares to which he or she was theretofore entitled upon such
  exercise, but for the same aggregate consideration payable therefore, such number of Shares as such Optionee would have held as a result of such subdivision or redivision if, on the record date thereof, the Optionee had been the registered holder of the number of Shares to which he or she was theretofore entitled upon such exercise.

  

  8.2

  In the event of any consolidation of the Shares into a lesser number of Shares at any time after the grant of an Option to any Optionee and prior to the expiration of the term of such Option, the Corporation shall deliver to such Optionee at the time of any subsequent exercise of his or her Option in accordance with the terms hereof, in lieu of the number of Shares to which he or she was theretofore entitled upon such exercise, but
  for the same aggregate consideration payable therefore, such number of Shares as such Optionee would have held as a result of such consolidation if, on the record date thereof, the Optionee had been the registered holder of the number of Shares to which he or she was theretofore entitled upon such exercise.

  

  8.3

  If at any time after the grant of an Option to any Optionee and prior to the expiration of the term of such Option, the Shares shall be reclassified, reorganized or otherwise changed, otherwise than as specified in Sections 8.1 and 8.2 or, subject to the provisions of Subsection 9.2(a) hereof, the Corporation shall consolidate, merge or amalgamate with or into another corporation (the corporation resulting or continuing from such
  consolidation, merger or amalgamation being herein called the "Successor Corporation"), or the Corporation shall pay a stock dividend (other than any dividends in the ordinary course), the Optionee shall be entitled to receive upon the subsequent exercise of his or her Option in accordance with the terms hereof and shall accept in lieu of the number of Shares to which he or she was theretofore entitled upon such exercise but for the
  same aggregate consideration payable therefore, the aggregate number of shares of the appropriate class and/or other securities of the Corporation or the Successor Corporation (as the case may be) and/or other consideration from the Corporation or the Successor Corporation (as the case may be) that the Optionee would have been entitled to receive as a result of such reclassification, reorganization or other change or, subject to the
  provisions of Subsection 9.2(a) hereof, as a result of such consolidation, merger, amalgamation, or stock dividend, if on the record date of such reclassification, reorganization, other change or stock dividend, or the effective date of such consolidation, merger or amalgamation or dividend payment, as the case may be, he or she had been the registered holder of the number of Shares to which he or she was theretofore entitled upon
  such exercise.

 

  5

 

  8.4          In the event the Corporation should declare and pay a special cash dividend or other distribution out of the ordinary course, a special dividend in specie on the Shares, or a stock dividend other than in the ordinary course, the Option Price of all Options outstanding on the record date of such dividend or other distribution shall be reduced by an amount equal to the cash
  payment or other distribution or the fair market value of the dividend in specie or stock dividend or other distribution, as determined by the Board in its sole discretion.  Any such reduction in the Option Price shall be subject to regulatory approval and the Option Price shall not be less than $0.01 per Share.

  

  9.

  AMENDMENT OR DISCONTINUANCE OF THE PLAN

  

  9.1

  The Board may amend or discontinue the Plan at any time, provided, however, that no such amendment may materially and adversely affect any Option previously granted to an Optionee without the consent of the Optionee, except to the extent required by law.  Any such amendment shall, if required, be subject to the prior approval of, or acceptance by, any stock exchange on which the Shares are listed and posted for trading.  For greater
  certainty, the Board may, by resolution duly passed, amend this Plan to reduce the number of shares in respect of which options have not been granted at the date of such resolution and that are subject to this Plan, to meet the requirements of any stock exchange or regulatory authority.

  

  9.2

  Notwithstanding anything contained to the contrary in this Plan or in any resolution of the Board in implementation thereof:

  

  (a)

  in the event the Corporation proposes to amalgamate, merge or consolidate with any other corporation (other than a wholly-owned Subsidiary) or to liquidate, dissolve or wind-up, or in the event an offer to purchase or repurchase the Shares of the Corporation or any part thereof shall be made to all or substantially all holders of Shares of the Corporation, the Corporation shall have the right, upon written notice thereof to each
  Optionee holding Options under the Plan, to permit the exercise of all such Options within the 20 day period next following the date of such notice and to determine that upon the expiration of such 20 day period, all rights of the Optionees to such Options or to exercise same (to the extent not theretofore exercised) shall ipso facto terminate and cease to have further force or effect whatsoever;

  

  (b)

  in the event of the sale by the Corporation of all or substantially all of the assets of the Corporation as an entirety or substantially as an entirety so that the Corporation shall cease to operate as an active business, any outstanding Option may be exercised as to all or any part of the Optioned Shares in respect of which the Optionee would have been entitled to exercise the Option in accordance with the provisions of the Plan at
  the date of completion of any such sale at any time up to and including, but not after the earlier of: (i) the close of business on that date which is thirty (30) days following the date of completion of such sale; and (ii) the close of business on the expiration date of the Option; but the Optionee shall not be entitled to exercise the Option with respect to any other Optioned Shares;

 

  6

 

  

  (c)

  subject to the rules of any relevant stock exchange or other regulatory authority, the Board may, by resolution, advance the date on which any Option may be exercised or extend the expiration date of any Option.  The Board shall not, in the event of any such advancement or extension, be under any obligation to advance or extend the date on or by which Options may be exercised by any other Optionee; and

  

  (d)

  the Board may, by resolution, but subject to applicable regulatory requirements, decide that any of the provisions hereof concerning the effect of termination of the Optionee's employment shall not apply to any Optionee for any reason acceptable to the Board.

  

  Notwithstanding the provisions of this Article 9, should changes be required to the Plan by any securities commission, stock exchange or other governmental or regulatory body of any jurisdiction to which the Plan or the Corporation now is or hereafter becomes subject, such changes shall be made to the Plan as are necessary to conform with such requirements and, if such changes are approved by the Board, the Plan as amended, shall be
  filed with the records of the Corporation and shall remain in full force and effect in its amended form as of and from the date of its adoption by the Board.

  

  10.

  MISCELLANEOUS PROVISIONS

 

  10.1         An Optionee shall not have any rights as a shareholder of the Corporation with respect to any of the Shares covered by such Option until the date of issuance of a certificate for Shares upon the exercise of such Option, in full or in part, and then only with respect to the Shares represented by such certificate or certificates.  Without in any way limiting the generality of the
  foregoing, no adjustment shall be made for dividends or other rights for which the record date is prior to the date such share certificate is issued.

 

  10.2

  Nothing in the Plan or any Option shall confer upon an Optionee any right to continue or be re-elected as a director of the Corporation or any right to continue in the employ of the Corporation or any Subsidiary, or affect in any way the right of the Corporation or any Subsidiary to terminate his or her employment at any time; nor shall anything in the Plan or any Option be deemed or construed to constitute an agreement, or an
  expression of intent, on the part of the Corporation or any Subsidiary to extend the employment of any Optionee beyond the time which he or she would normally be retired pursuant to the provisions of any present or future retirement plan of the Corporation or any Subsidiary, or beyond the time at which he or she would otherwise be retired pursuant to the provisions of any contract of employment with the Corporation or any Subsidiary.

  

  10.3

  Notwithstanding Section 5.8 hereof, Options may be transferred or assigned between an Eligible Individual and the related Employee Corporation provided the assignor delivers notice to the Corporation prior to the assignment.

  

  10.4

  The Plan and all matters to which reference is made herein shall be governed by and interpreted in accordance with the laws of the Province of Ontario, the laws of Canada and the laws of the United States of America applicable therein.

  

  11.

  SHAREHOLDER AND REGULATORY APPROVAL

  

  11.1

  The Plan shall be subject to ratification by the shareholders of the Corporation to be effected by a resolution passed at a meeting of the shareholders of the Corporation, and to acceptance by any other relevant regulatory authority.  Any Options granted prior to such ratification and acceptance shall be conditional upon such ratification and acceptance being given and no such Options may be exercised unless and until such
  ratification and acceptance are given.

  

  DATED this 8th day of April, 2005.

  7Exhibit 10.1

REGISTRATION RIGHTS AGREEMENT

This REGISTRATION RIGHTS AGREEMENT (this “Agreement”), dated as of March 7, 2007, is by and between (i) Harbinger Capital Partners Master Fund I, Ltd. (“HCP”), Harbinger Capital Partners Special Situations Fund, L.P. (“SSF”) and Stanfield Offshore Leveraged Assets, Ltd. (“Stanfield,” and together with HCP and SSF, the “Holders”)), and (ii) Motient Corporation, a Delaware corporation (“Motient”). Certain capitalized terms used herein are defined in Section 7.

RECITALS:

WHEREAS, BCE, Inc. (“BCE”) and Motient have entered into an Exchange Agreement, dated as of the date hereof (the “BCE Exchange Agreement”), that provides, subject to the terms and conditions thereof, for the purchase by Motient of 100% of the shares of common stock of TerreStar Networks, Inc. and TerreStar Networks Bermuda Ltd. held directly by BCE (the “BCE Exchange”);

WHEREAS, as part of the consideration to be paid in the BCE Exchange, Motient will issue an aggregate of 9,031,213 shares Covered Shares of its common stock, par value $0.01 per share (“Common Shares”), to BCE; 

WHEREAS, the Holders currently own securities issued by Motient, and plan to acquire 4,500,000 of the 9,031,213 Common Shares to be issued to BCE by Motient (collectively, the “Covered Shares”), as follows:

	
             
 	
            HCP
 	
            SSF
 	
            Stanfield
 
	
            Common Shares 
 	
            10,454,716
 	
            2,632,726
 	
            4,042,700
 
	
            Common Shares issuable upon conversion of Preferred Stock
 	
            2,955,000
 	
            670,170
 	
            1,710,171
 
	
            Common Shares issuable upon exercise of warrants
 	
            1,886
 	
            0
 	
            0
 
	
            Common Shares to be acquired from BCE
 	
            959,715
 	
            1,540,285
 	
            2,000,000
 
	
            TOTAL
 	
            14,371,317
 	
            4,843,181
 	
            7,752,871
 

 

WHEREAS, in connection with its consummation of the transactions contemplated by the BCE Exchange Agreement, BCE desires to sell a portion of the Common Shares to be received in the BCE Exchange to the Holders, and the Holders are willing to purchase a portion of such shares on the condition that they receive registration rights from Motient with respect to the Covered Shares; and   

 

 

WHEREAS, in order to induce the Holders to acquire a portion of the shares to be issued in the BCE Exchange, and thereby to induce BCE to consummate the transactions under the BCE Exchange Agreement, Motient has agreed to provide certain registration rights to the Holders on the terms and subject to the conditions set forth herein.

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

SECTION 1.  REGISTRATION UNDER THE SECURITIES ACT.

1.1          Registration.

(a)          Each of the parties to this Agreement shall cooperate, and Motient shall file with the Securities and Exchange Commission (the “SEC”) as soon as practicable following the date hereof, a registration statement on Form S-3 for the purpose of registering the resale of all Covered Shares under the Securities Act  by the Holders in an offering to be made on a continuous basis pursuant to Rule 415, (the “Resale Registration Statement”). Motient hereby represents that it is eligible to file a registration statement on Form S-3, and covenants that it will maintain that eligibility to utilize Form S-3 for so long as it is obliged to keep the Resale  Registration Statement effective under
section 1.1(b) below. Motient will cause the Resale 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. Motient shall use its commercially reasonable efforts, and the Holders will cooperate with Motient, to have the Resale Registration Statement declared effective by the SEC as promptly as practicable.

(b)          Motient 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 the Holders have sold all of the Covered Shares registered thereunder or (ii) the later of (A) 90 days after HCP and its affiliates cease to be affiliates of Motient for purposes of Rule 144 under the Securities Act and (B) the second year anniversary of the closing of the transactions contemplated by the BCE Exchange Agreement; provided, that such date shall be extended by the amount of time of any period during which the Holders 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), or Section 2.1 below. Thereafter, Motient shall be entitled to withdraw the Resale Registration Statement and, upon such withdrawal, the Holders shall have no further right to sell any of the Covered Shares pursuant to the Resale Registration Statement (or any prospectus forming a part thereof).

1.2          Registration Procedures. Subject to the terms and conditions hereof, Motient shall use its commercially reasonable efforts to effect the registration and the disposition of the Covered Shares in accordance with the intended method of disposition thereof, and pursuant thereto Motient shall as expeditiously as practicable:

 

-2-

 

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

	
            
			 
  	
            
			(b)
 	
            furnish to the Holders such number of copies of the Resale Registration Statement, each amendment and supplement thereto, the prospectus included in the Resale Registration Statement and such other documents as the Holders may reasonably request in order to facilitate the disposition of the Covered Shares registered thereunder; provided, however, that Motient 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 Motient;
 

	
            
			 
  	
            
			(c)
 	
            prepare and file with the SEC such amendments and supplements to the Resale Registration Statement and the prospectus used in connection therewith as may be necessary to keep the Resale Registration Statement effective for the time period as specified in Section 1.1 in order to complete the disposition of the Covered Shares covered by the Resale Registration Statement and comply with the provisions of the Securities Act with respect to the disposition of all Covered Shares during such period in accordance with the intended methods of disposition thereof as set forth in the Resale Registration Statement, including without limitation identification of the permitted transferees of the Holders;
 
	
             	
            (d)	
            use its commercially reasonable efforts to register or
			qualify the Covered Shares under such other securities or blue sky
			laws of such jurisdictions as the Holders reasonably request and do
			any and all other acts and things which may be reasonably necessary
			or advisable to

 

-3- 

 

	
            
			 
  	
             
 	
            
			 enable the Holders to consummate the disposition of the Covered Shares in such jurisdictions (provided that Motient shall not be required to (i) qualify generally to do 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 the Holders, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, (i) when the Resale 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 the Resale Registration Statement or prospectus, (iii) of the happening of any event as a result of which the prospectus included in the Resale 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 the Holders shall immediately cease any offers, sales or other distribution of Covered Shares registered thereunder), and, subject to 1.3(c), Motient
shall promptly prepare a supplement or amendment to such prospectus so that, as thereafter used by the Holders for the resale of Covered 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 the Resale Registration Statement, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any of the Covered Shares included in the Resale Registration Statement for sale or distribution in any jurisdiction;
 

	
            
			 
  	
            
			(f)
 	
            in the event of the issuance of any stop order suspending the effectiveness of the Resale Registration Statement, or of any order suspending or preventing the use of any related prospectus or suspending the qualification of any Covered Shares included in the Resale Registration Statement for sale or distribution in any jurisdiction, Motient 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;
 

	
            
			 
  	
            
			(g)
 	
            provide a transfer agent and registrar for all Covered Shares not later than the effective date of the Resale Registration Statement; 
 
	
             	
            (h)	
            use its commercially reasonable efforts to cause the
			Covered Shares covered by the Resale Registration Statement to be
			registered with or approved by such other governmental agencies or
			authorities as may be necessary to enable the Holders to complete
			the disposition of the

 

-4- 

 

 

	
            
			 
  	
             
 	
            
			Covered Shares covered by such registration statement and comply with the provisions of the Securities Act with respect to the disposition of all Covered Shares covered by the Resale Registration Statement during such period in accordance with the intended methods of disposition by the Holders thereof set forth in the Resale Registration Statement;
 

	
            
			 
  	
            
			(i)
 	
            make available for inspection by the Holders, any underwriter participating in any disposition pursuant to the Resale Registration Statement on behalf of the Holders, and any attorney, accountant or other agent retained by the Holders or underwriter, all financial and other records, pertinent corporate documents and properties of Motient, and cause Motient’s officers, managers, employees and independent accountants to supply all information reasonably requested by Motient or any underwriter, attorney, accountant or agent in connection with the Resale 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. Motient shall make
			available to the Holders promptly after the same is prepared and
			publicly distributed, filed with the SEC, or received by Motient,
			one copy of the Resale Registration Statement and any amendment
			thereto, each preliminary prospectus and each amendment or
			supplement thereto, each letter written by or on behalf of Motient
			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 the Resale Registration Statement. Motient will promptly respond
			to any and all comments received from the SEC, with a view towards
			causing the Resale 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 the Resale Registration
			Statement or any amendment thereto will not be subject to review.
 

	
            
			 
  	
            
			(b)
 	
            Motient may require the Holders to furnish to Motient any other information regarding the Holders and the disposition of Covered Shares, including without limitation the plan of 
 

-5- 

 

 

	
            
			 
  	
             
 	
            
			distribution of the Covered Shares, as Motient reasonably determines is required to be included in the Resale Registration Statement.
 

	
            
			 
  	
            
			(c)
 	
            Each of the Holders agrees that, upon notice from Motient of the happening of any event as a result of which the prospectus included in the Resale 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”), the Holders will forthwith discontinue disposition of Covered Shares pursuant to the Resale Registration Statement until the Holders are advised in writing by Motient that the use of the prospectus may be resumed and are furnished with a supplemented or amended prospectus as contemplated by Section 1.2 hereof; provided, however, that such
postponement of sales of Covered Shares by the Holders 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 Motient shall give the Holders any Suspension Notice or impose a Lockup Period (as defined below), Motient shall extend the period of time during which Motient is required to maintain the Resale Registration Statement effective pursuant to this Agreement by the number of days during the period from and including the date of the giving of such Suspension Notice to and including the date the Holders either are advised by Motient that the use of the prospectus may be resumed or by the Lockup Period, as applicable. In any event, Motient shall not be entitled to deliver more than a total of three (3) Suspension Notices in any 12 month period.
 

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

	
             	
            1.4	
            Expenses.
	
            
			 
  	
            
			(a)
 	
            Registration Expenses. All Registration Expenses shall be borne by Motient.
 

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

 

-6- 

 

SECTION 2.  LOCKUP AGREEMENT.

2.1          Lockup. Each of the Holders hereby agrees, beginning 60 days (extended for any period during a Suspension Notice during the first 60 days) following the Closing Date (as defined in the BCE Exchange Agreement), to not effect any public sale or distribution (including any sales pursuant to Rule 144) of equity securities of Motient, 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 primary underwritten registered public offering of equity securities of Motient or securities convertible or exchangeable into or exercisable for equity securities of Motient (except as part of such underwritten registration), unless the underwriters managing such
registered public offering otherwise consent in writing, and the Holders will deliver an undertaking to the managing underwriters (if requested) consistent with this covenant (in each case, a “Lockup Period”). Notwithstanding the foregoing, the Holders shall not be obligated to comply with the provisions of this Section 2.1, (i) more than two times in any 12-month period, and (ii) unless all officers and directors of Motient, and holders of more than 6% of the total combined voting power of all Common Shares then outstanding are also subject to a Lockup Period on the same terms as the Holders. Notwithstanding the foregoing, this Section 2.1 shall not apply to any Holder (or transferee of any such Holder in accordance with Section 5.1 hereof) who does not own or have the right to acquire or vote with respect to Common Shares consisting of, in the aggregate, more than six percent (6%) of the total combined
voting power of all Common Shares then outstanding. Solely for purposes of calculating the six percent (6%) in the preceding sentence, each Holder shall be considered individually and not in the aggregate with its permitted transferees. 

 

SECTION 3.  INDEMNIFICATION.

3.1          Indemnification by Motient. Motient agrees to indemnify, to the extent permitted by law, the Holders, their officers, directors, employees and Affiliates and each Person who controls the Holders (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 the Resale Registration Statement or any prospectus forming a part of the Resale 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 Motient of the Securities Act, the Exchange Act or applicable “blue sky” laws, except that Motient shall not be liable to any Holder pursuant to this Section 3.1 insofar as the same are made in reliance and in conformity with any information furnished in writing to Motient by such Holder expressly for use therein or by the failure of such Holder to deliver a copy of such registration statement or prospectus or any amendments or supplements thereto as required by law after Motient has furnished such Holder with a sufficient number of copies of the same.

 

-7- 

 

3.2          Indemnification by the Holders. In connection with the Resale Registration Statement in which the Holders are participating, each Holder shall furnish to Motient in writing such information as Motient reasonably requests for use in connection with any such registration statement or prospectus and, to the extent permitted by law, shall indemnify Motient, its directors, officers, employees and Affiliates, and each Person who controls Motient (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 the Resale Registration Statement, the prospectus or preliminary prospectus forming a part of the Resale 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 such Holder 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 each Holder to indemnify Motient hereunder shall be limited to the net proceeds to such Holder from the sale of the Covered Shares pursuant to the Resale Registration Statement in the case of the Resale Registration Statement.

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 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.

 

-8- 

 

 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 each Holder for contribution pursuant to this Section 3.4 be greater than the amount for which such Holder 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 the Holders continue to hold any Covered Shares, Motient 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, and to otherwise maintain its eligibility to utilize Form S-3 ; provided, however, that the foregoing shall not be construed to require Motient 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 any Holder of Covered 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(b) hereof, Motient shall use its commercially reasonable efforts to cooperate with such Holder so as to enable such sales to be made in accordance with applicable laws, rules and regulations, the requirements of the transfer agent of Motient, 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 Covered Shares sold thereby, such certificates to be furnished in such numbers and denominations as such Holder may reasonably request.

SECTION 5. RESTRICTIONS ON TRANSFER.

5.1          Permitted Transfers. 
With respect only to the Common Shares to be acquired from BCE (which are to be
issued by Motient in an unregistered transaction) (the “”BCE Shares”), each of
the Holders hereby agrees that, until it has disposed of all of the BCE Shares,
it will not, directly or indirectly, without the 

-9- 

 

prior written consent of Motient, sell, distribute, transfer or otherwise dispose (in each case, a “Disposition”) of any  BCE Shares, except:

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

	
            
			 
  	
            
			(b)
 	
            sales of BCE Shares pursuant to Rule 144 under the Securities Act; or
 

	
            
			 
  	
            
			(c)
 	
            sales or transfers of  BCE 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 Common 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 the other transferees) of the total combined voting power of all Common Shares then outstanding; provided, however, that in each such case, the transferee shall receive and hold such BCE 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 BCE Shares, except in accordance with the provisions of this Section 5.1; or
 

	
            
			 
  	
            
			(d)
 	
            a bona fide pledge of or the granting of a security interest in the BCE 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 BCE Shares, to be bound by the provisions of this Agreement in connection with any right it may have to dispose of any such BCE Shares (and, upon agreeing so to be bound, the provisions of this Agreement shall inure to the benefit of such party); or
 

	
            
			 
  	
            
			(e)
 	
            sales or transfers of BCE Shares pursuant to a tender or exchange offer; or
 

	
            
			 
  	
            
			(f)
 	
            dispositions of BCE Shares by any Holder to any wholly owned subsidiary of such Holder or to a successor corporation of such Holder or to an Affiliate of such Holder; provided, however, that in each such case, the transferee shall receive and hold such BCE 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 BCE Shares, except in accordance with the provisions of this Section 5.1; or
 

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

 

-10- 

 

provided, that (i) in the event that any Holder seeks to effect a Disposition of any BCE Shares pursuant to clauses (b), (c) or (f) of this Section 5.1, such Disposition is made in compliance with applicable securities laws, and (ii) prior to any Disposition pursuant to clause (b), if requested by Motient’s transfer agent (other than with respect to sales of BCE Shares pursuant to Rule 144(k) under the Securities Act), or in any Disposition pursuant to clauses (c) or (f), such Holder shall have delivered to Motient an opinion of counsel stating that such Disposition (A) is permitted by this Agreement and (B) does not require registration 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.

“Holders” means HCP, SSF and Stanfield and any of its permitted transferees pursuant to Section 5.1(c) or (f).

“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 Motient’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 Motient and all independent certified public accountants retained by Motient and other Persons retained by Motient.

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

 

-11- 

 

SECTION 8.  MISCELLANEOUS.

	
            
			 
  	
            
			8.1
 	
            Legends and Stop Transfer Orders.
 

(a)          Each of the Holders hereby agrees that all certificates representing BCE Shares 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 [       ], 200o, between Motient Corporation and the Holders named therein, a copy of which is on file at the office of the corporate secretary of the Holders.”

(b)          Each of the Holders hereby agrees to the entry of stop transfer orders with the transfer agent and registrar of the BCE Shares against the transfer (other than in compliance with this Agreement) of legended securities held by the Holders (or its permitted transferees under Section 5.1(c) or (f) hereof).

(c)          Motient 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 Motient.
 

For as long as the Holders continue to hold any Covered Shares, if any of the following events (collectively, a “Motient 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 Motient 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 Motient 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; 

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

 

-12-

 

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 the Holders or Motient except by a written agreement signed by the Holders holding Covered Shares and Motient.

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 the Holders or Motient.

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.

 

-13- 

 

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 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 HCP and SSF:

Harbinger Capital Partners Master Fund I., Ltd

c/o HMC – New York, Inc.

555 Madison Avenue, Suite 1600

New York, New York, 10022

Attn:  Investment Counsel  

 

To Motient:

Motient Corporation

300 Knightsbridge Parkway

Lincolnshire Parkway

 

-14- 

 

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

 

 

 

 

 

 

 

 

 

-15-

 

 

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

 

	
             
 	
            MOTIENT CORPORATION
 
	
             
 	
             
 
	
             
 	
             
 	
             
 
	
             
 	
            By:
 	
            /s/ Jeffrey Epstein
 
	
             
 	
             
 	
            Name: Jeffrey Epstein
 
	
             
 	
             
 	
            Title:  General Counsel
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Registration Rights Agreement]

 

 

 

 

	
            
			 
 	
            
			 
 
	
            
			 
 	
            Harbinger Capital Partners Master Fund I., Ltd
 
	
            
			 
 	
            
			 

By:
 	
            
			 

Harbinger Capital Partners Offshore

Manager, LLC, Investment Manager

 

 
 
	
            
			 
 	
            By:
 	
            /s/
			Philip A. Falcone
 
	
            
			 
 	
            
			 
 	
            Name:
 	
            
			Philip A. Falcone
 
	
            
			 
 	
            
			 
 	
            Title:
 	
            
			Vice President 
 
	
            
			 
 	
            
			 
 	
            
			 
 
	
            
			 
 	
            
			 
 	
            
			 
 
					

 

	
            
			 
 	
            Harbinger Capital Partners Special Situations Fund, L.P.
 
	
            
			 
 	
            
			 

By:
 	
            
			 

Harbinger Capital Partners Special

Situations GP, LLC, General Partner

 

 
 
	
            
			 
 	
            By:
 	
            /s/
			Philip A. Falcone
 
	
            
			 
 	
            
			 
 	
            Name:
 	
            
			 Philip A. Falcone
 
	
            
			 
 	
            
			 
 	
            Title:
 	
            
			 Vice President
 
	
            
			 
 	
            
			 
 	
            
			 
 
					

 

	
            
			 
 	
            Stanfield Offshore Leveraged Assets, Ltd.
 
	
            
			 
 	
            
			 

By:
 	
            
			 

Stanfield Capital Partners LLC,

Investment Manager

 

 
 
	
            
			 
 	
            By:
 	
            /s/
			Chris Pucillo
 
	
            
			 
 	
            
			 
 	
            Name:
 	
            
			Chris Pucillo 
 
	
            
			 
 	
            
			 
 	
            Title:
 	
            
			Partner 
 
	
            
			 
 	
            
			 
 	
            
			 
 

[Signature Page to Registration Rights Agreement]

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