Document:

Form of Warrant

 EXHIBIT 10.2 
  
 NEITHER THESE SECURITIES NOR THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE
COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS
EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES AND THE SECURITIES ISSUABLE UPON EXERCISE OF THESE SECURITIES MAY BE PLEDGED IN
CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH SECURITIES. 
  
 AIRNET COMMUNICATIONS CORPORATION 
  
 WARRANT

  
 Original Issue Date: April 23, 2004 
  
 AirNet Communications Corporation, a Delaware corporation (the
“Company”), hereby certifies that, for value received, [                            ]
or its registered assigns (the “Holder”), is entitled to purchase from the Company up to a total of [                ] shares of Common Stock (as
defined below) (such shares, the “Warrant Shares”). This Warrant (“Warrant”) may be exercised from time to time commencing the 181st day following the Original Issue Date first above listed (the “Original Issue Date”) and through and including 6:30 p.m. (New York City time)
on October 21, 2009 (the “Expiration Date”), and subject to the following terms and conditions: 
  
 1. Definitions. As used in this Warrant, the following terms shall have the respective definitions set forth in this Section 1. Capitalized terms
that are used and not defined in this Warrant that are defined in the Purchase Agreement (as defined below) shall have the respective definitions set forth in the Purchase Agreement. 
  
 “Business Day” means any day except Saturday, Sunday and any day that is a federal legal holiday in the
United States or a day on which banking institutions in the State of New York or the State of Florida are authorized or required by law or other government action to close. 
  
 “Common Stock” means the common stock of the Company, par value $.001 per share, and any securities into
which such common stock may hereafter be reclassified. 
  

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 “Exercise Price” means $1.32, subject to adjustment in accordance with Section 9
hereof. 
  
 “New York Courts” means the state and
federal courts sitting in the City of New York, Borough of Manhattan. 
  
 “Purchase Agreement” means the Securities Purchase Agreement, dated April 22, 2004, to which the Company and the original Holder are parties. 
  
 “Trading Day” means (i) a day on which the Common Stock is traded on a Trading Market (other than the OTC
Bulletin Board), or (ii) if the Common Stock is not listed on a Trading Market (other than the OTC Bulletin Board), a day on which the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, or (iii) if the
Common Stock is not quoted on any Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as reported by the National Quotation Bureau Incorporated (or any similar organization or agency succeeding to its functions
of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day. 
  
 2. Registration of Warrant. The Company shall register this Warrant upon records to be maintained by the Company for
that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Holder agrees that it may not transfer this Warrant as to more than the number of Warrant Shares then outstanding as shown on the
most updated Warrant Exercise Log, and any purported transfer in excess of such number of Warrant Shares shall have no effect. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any
exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 
  
 3. Registration of Transfers. The Company shall register the transfer of any portion of this Warrant in the Warrant Register, upon surrender of
this Warrant, with the Form of Assignment attached hereto duly completed and signed, to the Company at its address specified herein. Upon any such registration or transfer, a new Warrant to purchase Common Stock, in substantially the form of this
Warrant (any such new Warrant, a “New Warrant”), evidencing the portion of this Warrant so transferred shall be issued to the transferee and a New Warrant evidencing the remaining portion of this Warrant not so transferred, if any,
shall be issued to the transferring Holder. The acceptance of the New Warrant by the transferee thereof shall be deemed the acceptance by such transferee of all of the rights and obligations of a holder of a Warrant. 
  
 4. Exercise and Duration of Warrants. This Warrant shall be
exercisable by the registered Holder at any time and from time to time commencing the 181st day following the
Original Issue Date and through and including 6:30 p.m. New York City time on the Expiration Date. At 6:30 p.m., New York City time on the Expiration Date, the portion of this Warrant not exercised prior thereto shall be and become void and of no
value. The Company may not call or redeem any portion of this Warrant without the consent of the Holder. 
  

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 5. Delivery of Warrant Shares. 
  
 (a) To acquire Warrant Shares under this Warrant, the Holder shall not be required to physically surrender this Warrant
unless the aggregate number of Warrant Shares then represented by this Warrant is being exercised. Upon delivery of a written notice, in the form of the Exercise Notice attached hereto (the “Exercise Notice”) to the Company
(together with the Warrant Exercise Log attached thereto (the “Warrant Exercise Log”) at its address for notice set forth herein and upon payment of the Exercise Price multiplied by the number of Warrant Shares that the Holder
intends to purchase hereunder, the Company shall promptly (but in no event later than three Trading Days after the Date of Exercise) issue and deliver to the Holder, a certificate representing the number of Warrant Shares to which such exercise
pertains (the dollar amount of the exercise at issue divided by the Exercise Price), which, unless otherwise required by the Purchase Agreement, shall be free of restrictive legends. The Company shall, upon request of the Holder and subsequent to
the date on which a registration statement covering the resale of the Warrant Shares has been declared effective by the Securities and Exchange Commission, use its best efforts to deliver the Warrant Shares hereunder electronically through the
Depository Trust Corporation or another established clearing corporation performing similar functions, if available, provided, that, the Company may, but will not be required to change its transfer agent if its current transfer agent cannot
deliver Warrant Shares electronically through the Depository Trust Corporation. A “Date of Exercise” means the date on which the Holder shall have delivered to Company: (i) the Exercise Notice (with the Warrant Exercise Log attached
to it), appropriately completed and duly signed and (ii) the Exercise Price for the number of Warrant Shares so indicated by the Holder to be purchased. 
  
 (b) If by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner required
pursuant to Section 5(a), then the Holder will have the right to rescind such exercise. 
  
 (c) If by the third Trading Day after a Date of Exercise the Company fails to deliver the required number of Warrant Shares in the manner required pursuant to Section 5(a), and if after such third Trading Day and
prior to the receipt of such Warrant Shares, the Holder purchases (in an open market transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving
upon such exercise (a “Buy-In”), then the Company shall (1) pay in cash to the Holder the amount by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so
purchased exceeds (y) the amount obtained by multiplying (A) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue by (B) the closing bid price of the Common Stock at the time of
the obligation giving rise to such purchase obligation and (2) reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored. The Holder shall provide the Company written notice indicating the
amounts payable to the Holder in respect of the Buy-In. 
  
 (d)
The Company’s obligations to issue and deliver Warrant Shares in accordance with the terms hereof are absolute and unconditional, irrespective of any action or inaction by the Holder to enforce the same, any waiver or consent with respect to
any provision hereof, the recovery of any judgment against any Person or any action to enforce the same, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder or any other Person of any
obligation to the Company or any violation or alleged 
  

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 violation of law by the Holder or any other Person, and irrespective of any other circumstance which might otherwise
limit such obligation of the Company to the Holder in connection with the issuance of Warrant Shares. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without
limitation, a decree of specific performance and/or injunctive relief with respect to the Company’s failure to timely deliver certificates representing Warrant Shares upon exercise of the Warrant as required pursuant to the terms hereof.

  
 6. Charges, Taxes and Expenses. Issuance and delivery
of Warrant Shares upon exercise of this Warrant shall be made without charge to the Holder for any issue or transfer tax, withholding tax, transfer agent fee or other incidental tax or expense in respect of the issuance of such certificates, all of
which taxes and expenses shall be paid by the Company; provided, however, that the Company shall not be required to pay any tax which may be payable in respect of any transfer involved in the registration of any certificates for Warrant
Shares in a name other than that of the Holder. The Holder shall be responsible for all other tax liability that may arise as a result of holding or transferring this Warrant or receiving Warrant Shares upon exercise hereof. 
  
 7. Replacement of Warrant. If this Warrant is mutilated, lost, stolen
or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation hereof, or in lieu of and substitution for this Warrant, a New Warrant, but only upon receipt of evidence reasonably satisfactory to
the Company of such loss, theft or destruction and customary and reasonable indemnity (which shall not include a surety bond), if requested. Applicants for a New Warrant under such circumstances shall also comply with such other reasonable
regulations and procedures and pay such other reasonable third-party costs as the Company may prescribe. If a New Warrant is requested as a result of a mutilation of this Warrant, then the Holder shall deliver such mutilated Warrant to the Company
as a condition precedent to the Company’s obligation to issue the New Warrant. 
  
 8. Reservation of Shares. The Company covenants that it will at all times reserve and keep available out of the aggregate of its authorized but unissued and otherwise unreserved Common Stock, solely for the
purpose of enabling it to issue Warrant Shares upon exercise of this Warrant as herein provided, the number of Warrant Shares which are then issuable and deliverable upon the exercise of this entire Warrant, free from preemptive rights or any other
contingent purchase rights of persons other than the Holder (taking into account the adjustments and restrictions of Section 9). The Company covenants that all Warrant Shares so issuable and deliverable shall, upon issuance and the payment of
the applicable Exercise Price in accordance with the terms hereof, be duly and validly authorized, issued and fully paid and nonassessable. 
  
 9. Certain Adjustments. The Exercise Price and number of Warrant Shares issuable upon exercise of this Warrant are subject to adjustment from time
to time as set forth in this Section 9. 
  
 (a) Stock
Dividends and Splits. If the Company, at any time while this Warrant is outstanding, (i) pays a stock dividend on its Common Stock or otherwise makes a distribution on any class of capital stock that is payable in shares of Common Stock, (ii)
subdivides outstanding shares of Common Stock into a larger number of shares, or (iii) combines 
  

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 outstanding shares of Common Stock into a smaller number of shares, then in each such case the Exercise Price shall be
multiplied by a fraction of which the numerator shall be the number of shares of Common Stock outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such
event. Any adjustment made pursuant to clause (i) of this paragraph shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution, and any adjustment pursuant to
clause (ii) or (iii) of this paragraph shall become effective immediately after the effective date of such subdivision or combination. If any event requiring an adjustment under this paragraph occurs during the period that an Exercise Price is
calculated hereunder, then the calculation of such Exercise Price shall be adjusted appropriately to reflect such event. 
  
 (b) Fundamental Transactions. If, at any time while this Warrant is outstanding, (1) the Company effects any merger or consolidation of the Company
with or into another Person, (2) the Company effects any sale of all or substantially all of its assets in one or a series of related transactions, (3) any tender offer or exchange offer (whether by the Company or another Person) is completed
pursuant to which holders of Common Stock are permitted to tender or exchange their shares for other securities, cash or property, or (4) the Company effects any reclassification of the Common Stock or any compulsory share exchange pursuant to which
the Common Stock is effectively converted into or exchanged for other securities, cash or property (in any such case, a “Fundamental Transaction”), then the Holder shall have the right to purchase and receive upon the basis and upon
the terms and conditions herein specified and in lieu of the Warrant Shares immediately theretofore issuable upon exercise of the Warrant, such shares of stock, securities or assets (including cash) as would have been issuable or payable with
respect to or in exchange for a number of Warrant Shares equal to the number of Warrant Shares immediately theretofore issuable upon exercise of the Warrant, had such Fundamental Transaction not taken place, and in any such case appropriate
provision shall be made with respect to the rights and interests of each Holder to the end that the provisions hereof shall thereafter be applicable, as nearly equivalent as may be practicable in relation to any shares of stock, securities or assets
(including cash) thereafter deliverable upon the exercise thereof. The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions
of this Section. 
  
 (c) Subsequent Equity Sales.

  
 (i) If the Company or any subsidiary thereof, as applicable
with respect to Common Stock Equivalents (as defined below), at any time while this Warrant is outstanding and before the thirty month anniversary of the Closing Date, shall issue any securities of the Company or any Subsidiary which entitle the
holder thereof to acquire Common Stock at any time, including without limitation, any debt, preferred stock, rights, options, warrants or any other instrument that is at any time convertible into or exchangeable for, or otherwise entitles the holder
thereof to receive, Common Stock or other securities that entitle the holder to receive, directly or indirectly, Common Stock (“Common Stock Equivalents”) entitling any Person to acquire shares of Common Stock, at a price per share
less than the Exercise Price (if the holder of the Common Stock or Common Stock Equivalent so issued shall at any time, whether by operation of purchase price adjustments, reset provisions, floating 
  

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 conversion, exercise or exchange prices or otherwise, or due to warrants, options or rights issued in connection with
such issuance, be entitled to receive shares of Common Stock at a price less than the Exercise Price, such issuance shall be deemed to have occurred for less than the Exercise Price), then, at the option of the Holder for such exercises as it shall
indicate, the Exercise Price shall be adjusted to mirror the conversion, exchange or purchase price for such Common Stock or Common Stock Equivalents (including any reset provisions thereof) at issue. Such adjustment shall be made whenever such
Common Stock or Common Stock Equivalents are issued. The Company shall notify the Holder in writing, no later than the Trading Day following the issuance of any Common Stock or Common Stock Equivalent subject to this section, indicating therein the
applicable issuance price, or of applicable reset price, exchange price, conversion price and other pricing terms. Notwithstanding the foregoing, no adjustment will be made under this subsection as a result of: (i) the issuance of the Securities
pursuant to the Transaction Documents, (ii) the issuance of securities upon the exercise or conversion of any Common Stock or Common Stock Equivalents issued by the Company prior to the date hereof, including, without limitation, the issuance of the
quarterly installment notes required under the terms of the Note Purchase Agreement, dated June 5, 2003, between the Company and the holders thereof with respect to principal not yet paid for, and the convertible interest accrued and accruing on
such Outstanding Notes (but will apply to any amendments, modifications and reissuances thereof), or (iii) the grant of options or warrants, or the issuance of additional securities, under any duly authorized Company stock option, restricted stock
plan or stock purchase plan whether now existing or approved by the Company and its stockholders in the future (but not as to any amendments or other modifications to the number of Common Stock issuable thereunder, the terms set forth therein, or
the exercise price set forth therein, unless such amendments or other modifications are approved by the Company’s stockholders). 
  
 (ii) If, at any time while this Warrant is outstanding, the Company or any Subsidiary issues Common Stock Equivalents at a price per share that floats or
resets or otherwise varies or is subject to adjustment based on market prices of the Common Stock (a “Floating Price Security”), then for purposes of applying the preceding paragraph in connection with any subsequent exercise, the
Exercise Price will be determined separately on each Exercise Date and will be deemed to equal the lowest price per share at which any holder of such Floating Price Security is entitled to acquire shares of Common Stock on such Exercise Date
(regardless of whether any such holder actually acquires any shares on such date). 
  
 (d) Calculations. All calculations under this Section 9 shall be made to the nearest cent or the nearest 1/100th of a share, as applicable. The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company, and the disposition of any
such shares shall be considered an issue or sale of Common Stock. 
  
 (e) Number of Warrant Shares. Simultaneously with any adjustment to the Exercise Price pursuant to paragraphs (a) and (b) of this Section, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be
increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the adjusted number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such
adjustment. 
  

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 (f) Notice of Adjustments. Upon the occurrence of each adjustment pursuant to this Section 9, the
Company at its expense will promptly compute such adjustment in accordance with the terms of this Warrant and prepare a certificate setting forth such adjustment, including a statement of the adjusted Exercise Price and adjusted number or type of
Warrant Shares or other securities issuable upon exercise of this Warrant (as applicable), describing the transactions giving rise to such adjustments and showing in detail the facts upon which such adjustment is based. Upon written request, the
Company will promptly deliver a copy of each such certificate to the Holder and to the Company’s Transfer Agent. 
  
 (g) Notice of Corporate Events. If the Company (i) declares a dividend or any other distribution of cash, securities or other property in respect
of its Common Stock, including without limitation any granting of rights or Warrants to subscribe for or purchase any capital stock of the Company or any Subsidiary, (ii) authorizes or approves, enters into any agreement contemplating or solicits
stockholder approval for any Fundamental Transaction or (iii) authorizes the voluntary dissolution, liquidation or winding up of the affairs of the Company (but only to the extent such disclosure would not result in the dissemination of material,
non-public information to the Holder), then the Company shall deliver to the Holder a notice describing the material terms and conditions of such transaction, at least 10 calendar days prior to the applicable record or effective date on which a
Person would need to hold Common Stock in order to participate in or vote with respect to such transaction, and the Company will take all steps reasonably necessary in order to insure that the Holder is given the practical opportunity to exercise
this Warrant prior to such time so as to participate in or vote with respect to such transaction; provided, however, that the failure to deliver such notice or any defect therein shall not affect the validity of the corporate action required to be
described in such notice. 
  
 10. Payment of Exercise
Price. The Holder may pay the Exercise Price in one of the following manners: 
  
 (a) Cash Exercise. The Holder may deliver immediately available funds; or 
  
 (b) Cashless Exercise. If an Exercise Notice is delivered one year after the Original Issue Date, and a registration statement permitting the
Holder to resell the Warrant Shares is not then effective or the prospectus forming a part thereof is not then available to the Holder for the resale of the Warrant Shares, then the Holder may notify the Company in an Exercise Notice of its election
to utilize cashless exercise, in which event the Company shall issue to the Holder the number of Warrant Shares determined as follows: 
  
 X = Y [(A-B)/A] 
  
 where: 
  
 X = the number of Warrant Shares to be issued to the Holder. 
  
 Y = the number of Warrant Shares with respect to which this Warrant is being exercised. 
  
 A = the average of the closing prices for the five Trading Days immediately prior to (but not including) the Exercise Date.

  
 B = the Exercise Price. 
  

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 For purposes of Rule 144 promulgated under the Securities Act, it is intended, understood and acknowledged that the
Warrant Shares issued in a cashless exercise transaction shall be deemed to have been acquired by the Holder, and the holding period for the Warrant Shares shall be deemed to have commenced, on the date this Warrant was originally issued.

  
 11. Limitation on Exercise. 
  
 (a) Notwithstanding anything to the contrary contained herein, the number of
Warrant Shares that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to insure that, following such exercise (or other issuance), the total number of shares of
Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with the Holder’s for purposes of Section 13(d) of the Exchange Act, does not exceed
4.999% of the total number of issued and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For such purposes, beneficial ownership shall be determined in accordance with Section
13(d) of the Exchange Act and the rules and regulations promulgated thereunder. This provision shall not restrict the number of shares of Common Stock which a Holder may receive or beneficially own in order to determine the amount of securities or
other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 9 of this Warrant. By written notice to the Company, the Holder may waive the provisions of this Section 11(a), but any such waiver
will not be effective until the 61st day after delivery of such notice. 
  
 (b) Notwithstanding anything to the contrary contained herein, the number of Warrant Shares that may be acquired by the Holder upon any exercise of this Warrant (or otherwise in respect hereof) shall be limited to the extent necessary to
insure that, following such exercise (or other issuance), the total number of shares of Common Stock then beneficially owned by such Holder and its Affiliates and any other Persons whose beneficial ownership of Common Stock would be aggregated with
the Holder’s for purposes of Section 13(d) of the Exchange Act, does not exceed 9.999% of the total number of issued and outstanding shares of Common Stock (including for such purpose the shares of Common Stock issuable upon such exercise). For
such purposes, beneficial ownership shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder. This provision shall not restrict the number of shares of Common Stock which a Holder
may receive or beneficially own in order to determine the amount of securities or other consideration that such Holder may receive in the event of a Fundamental Transaction as contemplated in Section 9 of this Warrant. This restriction may not be
waived. 
  
 12. No Fractional Shares. No fractional shares
of Warrant Shares will be issued in connection with any exercise of this Warrant and in lieu thereof, any fractional shares shall be rounded down to the nearest whole. 
  
 13. Notices. Any and all notices or other communications or deliveries hereunder (including, without limitation, any
Exercise Notice) shall be in writing and shall be deemed 
  

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 given and effective on the earliest of (i) the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section prior to 6:30 p.m. (New York City time) on a Trading Day, (ii) the next Trading Day after the date of transmission, if such notice or communication is delivered via facsimile at the
facsimile number specified in this Section on a day that is not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading Day, (iii) the Trading Day following the date of mailing, if sent by nationally recognized overnight courier
service, or (iv) upon actual receipt by the party to whom such notice is required to be given. The addresses for such communications shall be: (i) if to the Company, to 3950 Dow Road, Melbourne, Florida 32934, or Facsimile No.: (321) 676-9914, Attn:
Chief Financial Officer and General Counsel, or (ii) if to the Holder, to the address or facsimile number appearing on the Warrant Register or such other address or facsimile number as the Holder may provide to the Company in accordance with this
Section. 
  
 14. Warrant Agent. The Company shall serve as
Warrant agent under this Warrant. Upon 30 days’ notice to the Holder, the Company may appoint a new Warrant agent. Any corporation into which the Company or any new Warrant agent may be merged or any corporation resulting from any consolidation
to which the Company or any new Warrant agent shall be a party or any corporation to which the Company or any new Warrant agent transfers substantially all of its corporate trust or shareholders services business shall be a successor Warrant agent
under this Warrant without any further act. Any such successor Warrant agent shall promptly cause notice of its succession as Warrant agent to be mailed (by first class mail, postage prepaid) to the Holder at the Holder’s last address as shown
on the Warrant Register. 
  
 15. Miscellaneous. 

 
 (a) This Warrant shall be binding on and inure to the benefit of the
parties hereto and their respective successors and assigns. Subject to the preceding sentence, nothing in this Warrant shall be construed to give to any Person other than the Company and the Holder any legal or equitable right, remedy or cause of
action under this Warrant. This Warrant may be amended only in writing signed by the Company and the Holder and their successors and assigns. 
  
 (b) All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be governed by and construed and enforced in
accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of this Warrant and the
transactions herein contemplated (“Proceedings”) (whether brought against a party hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the New York Courts. Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to
assert in any Proceeding, any claim that it is not personally subject to the jurisdiction of any New York Court, or that such Proceeding has been commenced in an improper or inconvenient forum. Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any such Proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it
under 
  

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 this Warrant and agrees that such service shall constitute good and sufficient service of process and notice thereof.
Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by
jury in any legal proceeding arising out of or relating to this Warrant or the transactions contemplated hereby. If either party shall commence a Proceeding to enforce any provisions of this Warrant, then the prevailing party in such Proceeding
shall be reimbursed by the other party for its attorney’s fees and other costs and expenses incurred with the investigation, preparation and prosecution of such Proceeding. 
  
 (c) The headings herein are for convenience only, do not constitute a part of this Warrant and shall not be deemed to limit
or affect any of the provisions hereof. 
  
 (d) In case any one or
more of the provisions of this Warrant shall be invalid or unenforceable in any respect, the validity and enforceability of the remaining terms and provisions of this Warrant shall not in any way be affected or impaired thereby and the parties will
attempt in good faith to agree upon a valid and enforceable provision which shall be a commercially reasonable substitute therefor, and upon so agreeing, shall incorporate such substitute provision in this Warrant. 
  
 (e) Subject to the provisions of Section 9 hereof, prior to exercise of this
Warrant, the holder hereof shall not, by reason of by being a holder hereof, be entitled to any rights of a stockholder with respect to the Warrant Shares, including (without limitation) the right to vote such Warrant Shares, receive dividends or
other distributions thereon, exercise preemptive rights or be notified of stockholder meetings, and such holder shall not be entitled to any notice or other communication concerning the business or affairs of the Company. 
  
 (f) This Warrant may be modified or amended or the provisions hereof waived
with the written consent of the Company and the Holder. 
  
 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK, 
 SIGNATURE PAGE FOLLOWS] 
  

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 IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed by its authorized officer as
of the date first indicated above. 
  

			
	 AIRNET COMMUNICATIONS CORPORATION

		
	 By:
	 	  

	 Name:
	 	 
	 Title:
	 	 

  

 11 

 EXERCISE NOTICE 
 AIRNET COMMUNICATIONS CORPORATION 
 WARRANT DATED APRIL [    ], 2004 
  
 The undersigned hereby elects to purchase
             shares of Common Stock pursuant to the above referenced Warrant, and, if the Holder is not utilizing the cashless exercise provisions of such Warrant, the Holder
encloses herewith $             in cash, certified or official bank check or checks or other immediately available funds, which sum represents the aggregate Exercise Price for the
number of Warrant Shares to which this Exercise Notice relates, together with any applicable taxes payable by the undersigned pursuant to the Warrant. 
  
 By its delivery of this Exercise Notice, the undersigned represents and Warrants to the Company that it is an accredited investor as defined in Rule
501(a) under the Securities Act of 1933, as amended, and in giving effect to the exercise evidenced hereby the Holder will not beneficially own in excess of the number of shares of Common Stock (determined in accordance with Section 13(d) of the
Securities Exchange Act of 1934) permitted to be owned under Section 11 of this Warrant to which this notice relates. 
  
 The undersigned requests that certificates for the Warrant Shares issuable upon this exercise be issued in the name of 
  
 PLEASE INSERT SOCIAL SECURITY OR 
 TAX IDENTIFICATION NUMBER 
  
 (Please print name and address) 
 Warrant
Exercise Log 
  

							
	 Date

	  	 Number of Warrant Shares Available
 to be Exercised

	  	 Number of Warrant Shares
 Exercised

	  	 Number of Warrant Shares
 Remaining to be Exercised

  

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 AIRNET COMMUNICATIONS CORPORATION 
 WARRANT DATED APRIL [    ], 2004 
 FORM OF ASSIGNMENT 
  
 [To be completed and signed only upon transfer of Warrant] 
  
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto
                                        
                     the right represented by the within Warrant to purchase
             shares of Common Stock to which the within Warrant relates and appoints
                                 attorney to transfer said right on the books of
the Company with full power of substitution in the premises. 
  
 Dated:                             ,
         
  

	
	  

	 (Signature must conform in all respects to name of
 holder as specified on the face of the Warrant)

	
	  

	 Address of Transferee

	
	  

	  

  

	
	 In the presence of:

	  
  

  

 13EXHIBIT 10.38

                               MOTIENT CORPORATION

                         COMMON STOCK PURCHASE AGREEMENT

         This COMMON STOCK PURCHASE AGREEMENT (this "Agreement") is dated as of
April 7, 2004 and is by and among (i) MOTIENT CORPORATION, a Delaware
corporation, with its principal office at 300 Knightsbridge Pkwy., Lincolnshire,
IL 60069 (the "Company") (ii) The Raptor Global Portfolio, Ltd., The Tudor BVI
Global Portfolio, Ltd., The Altar Rock Fund L.P. and Tudor Proprietary Trading,
L.L.C., (collectively, "Tudor"), each of which is listed on Schedule 1 hereto,
and (iii) each other investor listed on Schedule 1 hereto (each of the persons
or entities described in clauses (ii) and (iii), individually, a "Purchaser"
and, collectively, the "Purchasers").

         WHEREAS, the Company desires to issue and sell to the Purchasers, and
the Purchasers desire to purchase from the Company, an aggregate of 4,215,910
shares (the "Shares") of the authorized but unissued shares of common stock,
$0.01 par value per share, of the Company (including any securities into which
or for which such shares may be exchanged for, or converted into, pursuant to
any stock dividend, stock split, stock combination, recapitalization,
reclassification, reorganization or other similar event the "Common Stock"), at
an aggregate purchase price of $23,187,505, all upon the terms and subject to
the conditions set forth in this Agreement;

         WHEREAS, simultaneously with entering in this Agreement, the Company
and the Purchasers are entering into that certain Registration Rights Agreement,
dated as of the date hereof (the "Registration Rights Agreement"), pursuant to
which the Company shall register for resale the Shares and the Warrant Shares
(as defined below) on the terms set forth therein;

         NOW THEREFORE, in consideration of the mutual agreements,
representations, warranties and covenants herein contained, the parties hereto
agree as follows:

         1. Definitions. As used in this Agreement, the following terms shall
have the following respective meanings:

                  (a) "Affiliate" means any Person that, directly or indirectly,
through one or more intermediaries, controls, is controlled by, or is under
common control with, a Person, as such terms are used and construed under Rule
144 (as defined below), and with respect to Tudor, in addition to the foregoing,
the term "Affiliate" shall also include the Related Entities.

                  (b) "Board" means the board of directors of the Company.

                  (c) "Closing Date" means the date hereof.

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                  (d) "Effective Date" means the earlier to occur of (i) date
that occurs ninety (90) days after the initial filing by the Company with the
SEC of a registration statement covering the resale of the Shares, and (ii)
September 30, 2004.

                  (e) "Exchange Act" means the Securities Exchange Act of 1934,
as amended, and all of the rules and regulations promulgated thereunder.

                  (f) "Fully Diluted Common Stock" means the outstanding Common
Stock and shares of Common Stock issued or issuable upon exercise of Warrants.

                  (g) "Majority Purchasers" has the meaning set forth in Section
8.9.

                  (h) "Material Adverse Effect" has the meaning set forth in
Section 3.1 of this Agreement.

                  (i) "Person" (whether or not capitalized) means an individual,
entity, partnership, limited liability company, corporation, association, trust,
joint venture, unincorporated organization, and any government, governmental
department or agency or political subdivision thereof.

                  (j) "Related Entities" includes, with respect to Tudor, any
entities for which any of the Tudor Entities or any its affiliates serve as
general partner and/or investment adviser or in a similar capacity, and all
mutual funds or other pooled investment vehicles or entities under the control
or management of any of the Tudor Entities or the general partner or investment
adviser thereof, or an any affiliate of any of them. For purposes of this
Agreement, (a) "Tudor Entities" means each of the following: any entity for
which Tudor Investment Corporation or an Affiliate thereof acts as general
partner and/or investment adviser, Tudor Investment Corporation, Tudor Group
Holdings LLC, their respective Affiliates, or any Affiliate or Affiliated Group
of Tudor Investment Corporation and/or Tudor Group Holdings LLC, and (b) with
respect to the Tudor Entities, "Affiliated Group" has the meaning given to it in
Section 1504 of the Internal Revenue Code of 1986, as amended, and in addition
includes any analogous combined, consolidated, or unitary group, as defined
under any applicable state, local or foreign income tax law.

                  (k) "Rule 144" means Rule 144 promulgated under the Securities
Act and any successor or substitute rule, law or provision.

                  (l) "SEC" means the Securities and Exchange Commission.

                  (m) "Securities Act" means the Securities Act of 1933, as
amended, and all of the rules and regulations promulgated thereunder.

                  (n) "Transfer Agent Instructions" means the Irrevocable
Transfer Agent Instructions, in substantially the form of Exhibit B, executed by
the Company and delivered to and acknowledged in writing by the Company's
transfer agent.

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                  (o) "Transaction Documents" means, collectively, the
Registration Rights Agreement and the Warrants.

                  (p) "Warrants" means the warrants to purchase Common Stock,
dated as of the date hereof, issued by the Company to the Purchasers, in
substantially the form attached hereto as Exhibit C.

                  (q) "Warrant Shares" means the shares of Common Stock issued
or issuable upon the exercise of the Warrants.

         2. Purchase and Sale of Shares.

                  2.1 Purchase and Sale. Subject to and upon the terms and
conditions set forth in this Agreement, the Company agrees to issue and sell to
each Purchaser, and each Purchaser hereby agrees, severally and not jointly, to
purchase from the Company, at the Closing, the number of Shares set forth
opposite such Purchaser's name on Schedule 1 hereto, at a purchase price equal
to $5.50 per share. The aggregate purchase price payable by the Purchasers to
the Company for all of the Shares shall be $23,187,505.

                  2.2 Closing. The closing of the transactions contemplated
under this Agreement (the "Closing") shall take place at 5:00 pm (Eastern Time)
at the offices of Bingham McCutchen LLP, 150 Federal Street, Boston,
Massachusetts 02110 on the Closing Date, or on such other date and at such time
as may be agreed upon between the Purchasers, on the one hand, and the Company,
on the other hand. At the Closing, the Company shall deliver to each Purchaser a
single stock certificate, registered in the name of such Purchaser, representing
the number of Shares purchased by such Purchaser, against payment of the
purchase price by wire transfer of immediately available funds to such account
as the Company shall designate in writing.

                  2.3 Tejas Securities Group, Inc. Fee. Upon the Closing or as
otherwise required by any agreement between the Company and Tejas Securities
Group, Inc. ("Tejas"), the Company shall pay to Tejas a broker fee in connection
with the transactions contemplated hereunder in the amount of $350,000, by wire
transfer of immediately available funds to such account as Tejas shall designate
in writing.

                  2.4 Tejas Securities Group, Inc. Warrants. Upon the Closing or
as otherwise required by any agreement between the Company and Tejas, the
Company shall issue to Tejas in connection with the transactions contemplated
hereunder, warrants to purchase One Million (1,000,000) shares of Common Stock
at an exercise price of $5.50 per share.

         3. Representations and Warranties of the Company. The Company hereby
represents and warrants to each Purchaser, as of the date hereof and except as
set forth on the disclosure schedule furnished by the Company to each Purchaser
(the "Disclosure Schedule") attached hereto as Schedule 2, as follows:

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                  3.1 Incorporation. Each of the Company and the Subsidiaries
(as defined in Section 3.18 below) is a corporation or other entity duly
organized, validly existing and in good standing under the laws of the State of
Delaware (or such other applicable jurisdiction of incorporation or formation),
and is in good standing as a foreign corporation or other entity in each
jurisdiction in which the nature of the business conducted or the character of
the property owned by it makes such qualification necessary, except where the
failure to be so qualified or in good standing, as the case may be, would not
result in a material adverse effect on the assets, liabilities (contingent or
otherwise), business, affairs, operations, prospects or condition (financial or
otherwise) of the Company ("Material Adverse Effect"). Each of the Company and
the Subsidiaries has all requisite corporate power and authority to carry on its
business as now conducted and to carry out the transactions contemplated hereby.
Neither the Company nor any of the Subsidiaries is in violation of any of the
provisions of its Certificate of Incorporation (or other charter document) or
By-laws.

                  3.2 Capitalization. The authorized capital stock of the
Company consists of (i) 100,000,000 shares of Common Stock, of which 25,246,682
shares were outstanding as of the date hereof, and (ii) 5,000,000 shares of
preferred stock, of which no shares are outstanding as of the date hereof. All
shares of the Company's issued and outstanding capital stock have been duly
authorized, are validly issued and outstanding, and are fully paid and
nonassessable. Except as set forth in Schedule 3.2 to the Disclosure Schedule,
there are no existing options, warrants, calls, preemptive (or similar) rights,
subscriptions or other rights, agreements, arrangements or commitments of any
character obligating the Company to issue, transfer or sell, or cause to be
issued, transferred or sold, any shares of the capital stock of the Company or
other equity interests in the Company or any securities convertible into or
exchangeable for such shares of capital stock or other equity interests,
including the Shares, the Warrants and the Warrant Shares, and there are no
outstanding contractual obligations of the Company to repurchase, redeem or
otherwise acquire any shares of its capital stock or other equity interests. The
issue and sale of the Shares, the Warrants and the Warrant Shares will not
obligate the Company to issue or sell, pursuant to any pre-emptive right or
otherwise, shares of Common Stock or other securities to any Person (other than
the Purchasers) and will not result in a right of any holder of Company
securities to adjust the exercise, conversion, exchange or reset price under
such securities.

                  3.3 Registration Rights. Except as set forth on Schedule 3.3
to the Disclosure Schedule, the Company has not granted or agreed to grant to
any Person any right (including "piggy-back" and demand registration rights) to
have any capital stock or other securities of the Company registered with the
SEC or any other government authority.

                  3.4 Authorization. All corporate action on the part of the
Company, its officers and directors necessary for the authorization, execution,

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delivery and performance of this Agreement and the Transaction Documents and the
consummation of the transactions contemplated herein and therein has been taken.
When executed and delivered by the Company, each of this Agreement and the
Transaction Documents shall constitute a legal, valid and binding obligation of
the Company, enforceable against the Company in accordance with its terms,
except as such may be limited by bankruptcy, insolvency, reorganization or other
laws affecting creditors' rights generally and by general equitable principles.
The Company has all requisite corporate power and authority to enter into this
Agreement and the Transaction Documents and to carry out and perform its
obligations under their respective terms.

                  3.5 Valid Issuance of the Shares. The Shares, the Warrants and
the Warrant Shares have been duly authorized, and the Shares and the Warrant
Shares, upon issuance pursuant to the terms hereof and the terms of the
Warrants, respectively, will be validly issued, fully paid and nonassessable and
not subject to any encumbrances, preemptive rights or any other similar
contractual rights of the stockholders of the Company or any other Person. The
Company has reserved from its duly authorized capital stock the number of shares
of Common Stock issuable upon execution of this Agreement and upon the exercise
in full of the Warrants (assuming such Warrants vest in full).

                  3.6 Financial Statements. The Company has furnished to the
Purchasers, and attached as Schedule 3.6 to the Disclosure Schedule, true and
complete copies of (i) the audited consolidated balance sheet of the Company and
the Subsidiaries as of the fiscal year ended December 31, 2002, and the related
audited consolidated income statement, audited consolidated statement of cash
flows and audited consolidated statement of stockholders' equity of the Company
and the Subsidiaries for the year then ended (the "Audited Financial
Statements"), (ii) a draft of the unaudited consolidated balance sheet of the
Company and the Subsidiaries as of the fiscal year ended December 31, 2003, and
the related audited consolidated income statement, audited consolidated
statement of cash flows and audited consolidated statement of stockholders'
equity of the Company and the Subsidiaries for the year then ended, and (iii)
the unaudited consolidated balance sheet of the Company and the Subsidiaries as
of February 29, 2004 (the "Balance Sheet") and the related consolidated income
statement, consolidated statement of cash flows and consolidated statement of
stockholders' equity of the Company for the two (2) months then ended (the
financial statements in clause (ii) and this clause (iii) are hereinafter
referred to, collectively, as the "Unaudited Financial Statements"). All of the
financial statements described in clauses (i)-(iii) above are hereinafter
referred to, collectively, as the "Financial Statements". The Financial
Statements have been prepared in accordance with United States generally
accepted accounting principles applied on a consistent basis during the periods
covered thereby, subject, in the case of the Unaudited Financial Statements, to
normal year-end adjustments (which individually and in the aggregate are not
material) and to the absence of footnotes thereto, and present fairly, in all
material respects, the financial position of the Company and the Subsidiaries
and the results of operations as of the date and for the periods indicated
therein.

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<PAGE>

                  3.7 SEC Documents. The Company has furnished to the Purchasers
true and complete copies of the following reports of the Company (collectively,
the "SEC Documents"): (i) the annual report on Form 10-K for the year ended
December 31, 2002 (the "Annual Report") and (ii) quarterly reports on Form 10-Q
for the periods ended March 31, 2002, June 30, 2002 and September 30, 2002. As
of their respective filing dates, the SEC Documents complied in all material
respects with the requirements of the Exchange Act, and the rules and
regulations promulgated thereunder, and none of the SEC Documents contain any
untrue statement of a material fact or omitted to state a material fact required
to be stated therein or necessary in order to make the statements made therein,
in light of the circumstances under which they were made, not misleading. The
financial statements of the Company included in the SEC Documents comply in all
material respects with applicable accounting requirements and the rules and
regulations of the SEC with respect thereto in effect at the time of filing. All
material agreements to which the Company is a party or to which the property or
assets of the Company are subject are included as part of or specifically
identified in the SEC Documents to the extent required by the rules and
regulations of the SEC as in effect at the time of filing. The Company has
prepared and filed with the SEC all filings and reports required by the
Securities Act and the Exchange Act to make the Company's filings and reports
current in all respects, except for the Company's periodic reports under the
Exchange Act required to be filed for fiscal year 2003 and any filings made
pursuant to the Securities Act which rely on such reports for their continued
effectiveness.

                  3.8 Consents. Except for (a) the filing and effectiveness of
any registration statement required to be filed by the Company under the
Securities Act pursuant to the terms of the Registration Rights Agreement and
(b) any required state "blue sky" law filings in connection with the
transactions contemplated hereunder or under the Transaction Documents, all
consents, approvals, orders and authorizations required on the part of the
Company in connection with the execution or delivery of, or the performance of
the obligations under, this Agreement and the Transaction Documents, and the
consummation of the transactions contemplated herein and therein, have been
obtained and will be effective as of the date hereof. The execution and delivery
by the Company of this Agreement and the Transaction Documents, the consummation
of the transactions contemplated herein and therein, and the issuance of the
Shares, the Warrants and the Warrant Shares, do not require the consent or
approval of the stockholders of, or any lender to, the Company.

                  3.9      No Conflict;  Compliance With Laws.

                  (a) The execution, delivery and performance by the Company of
this Agreement and the Transaction Documents, and the consummation of the
transactions contemplated hereby and thereby, including the issuance of the
Shares, the Warrants and the Warrant Shares, do not and will not (i) conflict
with or violate any provision of the Certificate of Incorporation (or other
charter documents) or By-laws of the Company or any of the Subsidiaries, (ii)
breach, conflict with or result in any violation of or default (or an event that
with notice or lapse of time or both would become a default) under, or give rise
to a right of termination, amendment, acceleration or cancellation (with or

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<PAGE>

without notice or lapse of time, or both) of any obligation, contract,
commitment, lease, agreement, mortgage, note, bond, indenture or other
instrument or obligation to which the Company or any of the Subsidiaries is a
party or by which they or any of their properties or assets are bound, except in
each case to the extent such breach, conflict, violation, default, termination,
amendment, acceleration or cancellation does not, and could not reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect,
or (iii) result in a violation of any statute, law, rule, regulation, order,
ordinance or restriction applicable to the Company, the Subsidiaries or any of
their properties or assets, or any judgment, writ, injunction or decree of any
court, judicial or quasi-judicial tribunal applicable to the Company, the
Subsidiaries or any of their properties or assets.

                  (b) Neither the Company nor any of the Subsidiaries (i) is in
default under or in violation of (and no event has occurred that has not been
waived that, with notice or lapse of time or both, would result in a default by
the Company or any of the Subsidiaries), nor has the Company or any of the
Subsidiaries received written notice of a claim that it is in default under or
that it is in violation of, any indenture, loan or credit agreement or any other
agreement or instrument to which it is a party or by which it or any of its
properties or assets is bound (whether or not such default or violation has been
waived), (ii) is in violation of any statute, rule or regulation of any
governmental authority, including without limitation all foreign, federal, state
and local laws relating to taxes, environmental protection, occupational health
and safety, product quality and safety and employment and labor matters, except
in each case as does not, and could not, reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

                  3.10 Brokers or Finders. Other than as described in Sections
2.3 and 2.4 above, neither the Company nor any of the Subsidiaries has dealt
with any broker or finder in connection with the transactions contemplated by
this Agreement or the Transaction Documents, and neither the Company nor any of
the Subsidiaries has incurred, or shall incur, directly or indirectly, any
liability for any brokerage or finders' fees or agents' commissions or any
similar charges in connection with this Agreement or the Transaction Documents,
or any transaction contemplated hereby or thereby.

                  3.11 OTC Bulletin Board. The Company's Common Stock is
currently actively traded, and thus quoted, on the over-the-counter bulletin
board.

                  3.12 Absence of Litigation. Except as set forth on Schedule
3.12 to the Disclosure Schedule, there are no pending or, to the Company's
knowledge, threatened actions, suits, claims, proceedings or investigations
against or involving the Company or any of the Subsidiaries except to the extent
described in the SEC Documents.

                  3.13 No Undisclosed Liabilities; Indebtedness. Since the date
of the Balance Sheet, the Company and the Subsidiaries have incurred no
liabilities or obligations, whether known or unknown, asserted or unasserted,
fixed or contingent, accrued or unaccrued, matured or unmatured, liquidated or

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unliquidated, or otherwise, except for liabilities or obligations that,
individually or in the aggregate, do not or would not have a Material Adverse
Effect and other than (a) liabilities and obligations arising in the ordinary
course of business and (b) the liabilities and obligations set forth on Schedule
3.13 to the Disclosure Schedule. Except for indebtedness reflected in the
Balance Sheet, the Company has no indebtedness outstanding as of the date
hereof. The Company is not in default with respect to any outstanding
indebtedness or any instrument relating thereto.

                  3.14 Contracts. All contracts, agreements, instruments and
other documents required to be filed as exhibits to any of the periodic reports
required to be filed by the Exchange Act are legal, valid, binding and in full
force and effect and are enforceable by the Company in accordance with their
respective terms, except as such may be limited by bankruptcy, insolvency,
reorganization or other laws affecting creditors' rights generally and by
general equitable principles.

                  3.15 Title to Assets. Each of the Company and the Subsidiaries
has good and marketable title to all real and personal property owned by it that
is material to the business of the Company or such Subsidiaries, in each case
free and clear of all liens and encumbrances, except those, if any, reflected in
the Financial Statements or incurred in the ordinary course of business
consistent with past practice. Any real property and facilities held under lease
by the Company or the Subsidiaries are held by it or them under valid,
subsisting and enforceable leases (subject to laws of general application
relating to bankruptcy, insolvency, reorganization, or other similar laws
affecting creditors' rights generally and other equitable remedies) with which
the Company and the Subsidiaries are in compliance in all material respects.

                  3.16 Labor Relations. Except as set forth on Schedule 3.16 to
the Disclosure Schedule, no labor or employment dispute exists or, to the
knowledge of the Company, is imminent or threatened, with respect to any of the
employees or consultants of the Company that has, or could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect.

                  3.17 Intellectual Property. The Company is the sole and
exclusive owner of, or has the exclusive right to use, all right, title and
interest in and to all material foreign and domestic patents, patent rights,
trademarks, service marks, trade names, brands, copyrights (whether or not
registered and, if applicable, including pending applications for registration)
and other proprietary rights or information, owned or used by the Company
(collectively, the "Rights"), and in and to each material invention, software,
trade secret, and technology used by the Company or any of the Subsidiaries (the
Rights and such other items, the "Intellectual Property"), and, to the Company's
knowledge, the Company owns and has the right to use the same, free and clear of
any claim or conflict with the rights of others (subject to the provisions of
any applicable license agreement). Except as set forth on Schedule 3.17 to the
Disclosure Schedule, there have been no written claims made against the Company
or any of the Subsidiaries asserting the invalidity, abuse, misuse, or
unenforceability of any of the Intellectual Property, and, to the Company's
knowledge, there are no reasonable grounds for any such claims.

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                  3.18 Subsidiaries; Joint Ventures. Except for the subsidiaries
listed on Schedule 3.18 to the Disclosure Schedule (the "Subsidiaries"), the
Company has no subsidiaries and does not otherwise own or control, directly or
indirectly, any other Person. Except as described in the SEC Documents, the
Company is not a participant in any joint venture, partnership, or similar
arrangement material to its business.

                  3.19 Taxes. The Company and each of the Subsidiaries has filed
(or has had filed on its behalf), will timely file or will cause to be timely
filed, or has timely filed for an extension of the time to file, all material
Tax Returns (as defined below) required by applicable law to be filed by it or
them prior to or as of the date hereof, and such Tax Returns are, or will be at
the time of filing, true, correct and complete in all material respects. Each of
the Company and the Subsidiaries has paid (or has had paid on its behalf) or,
where payment is not yet due, has established (or has had established on its
behalf and for its sole benefit and recourse) or will establish or cause to be
established in accordance with United States generally accepted accounting
principles on or before the date of hereof an adequate accrual for the payment
of, all material Taxes (as defined below) due with respect to any period ending
prior to or as of the date hereof. "Taxes" shall mean any and all taxes,
charges, fees, levies or other assessments, including income, gross receipts,
excise, real or personal property, sales, withholding, social security,
retirement, unemployment, occupation, use, goods and services, license, value
added, capital, net worth, payroll, profits, franchise, transfer and recording
taxes, fees and charges, and any other taxes, assessment or similar charges
imposed by the Internal Revenue Service or any taxing authority (whether state,
county, local or foreign) (each, a "Taxing Authority"), including any interest,
fines, penalties or additional amounts attributable to or imposed upon any such
taxes or other assessments. "Tax Return" shall mean any report, return,
document, declaration or other information or filing required to be supplied to
any Taxing Authority, including information returns, any documents with respect
to accompanying payments of estimated Taxes, or with respect to or accompanying
requests for extensions of time in which to file any such return, report,
document, declaration or other information. There are no claims or assessments
pending against the Company or any of the Subsidiaries for any material alleged
deficiency in any Tax, and neither the Company nor any of the Subsidiaries has
been notified in writing of any material proposed Tax claims or assessments
against the Company or any of the Subsidiaries. No Tax Return of the Company or
any of the Subsidiaries is or has been the subject of an examination by a Taxing
Authority. Each of the Company and the Subsidiaries has withheld from each
payment made to any of its past or present employees, officers and directors,
and any other person, the amount of all material Taxes and other deductions
required to be withheld therefrom and paid the same to the proper Taxing
Authority within the time required by law.

                  3.20     Pensions and Benefits.

                  (a) Schedule 3.20(a) to the Disclosure Schedule contains a
true and complete list of each "employee benefit plan" within the meaning of
Section 3(3) of the United States Employee Retirement Income Security Act of

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1974, as amended ("ERISA"), including, without limitation, multiemployer plans
within the meaning of Section 3(37) of ERISA, and all retirement, profit
sharing, stock option, stock bonus, stock purchase, severance, fringe benefit,
deferred compensation, and other employee benefit programs, plans, or
arrangements, whether or not subject to ERISA, under which (i) any current or
former directors, officers, employees or consultants of the Company has any
present or future right to benefits and which are contributed to, sponsored by
or maintained by the Company or any of the Subsidiaries, or (ii) the Company or
any of the Subsidiaries has any present or future liability. All such programs,
plans, or arrangements shall be collectively referred to as the "Company Plans."
Each Company Plan is included as part of or specifically identified in the SEC
Documents to the extent required by the rules and regulations of the SEC as in
effect at the time of filing.

                  (b) (i) Each Company Plan has been established and
administered in all material respects in accordance with its terms and in
compliance with the applicable provisions of ERISA, the Internal Revenue Code of
1986, as amended (the "Code"), and other applicable laws, rules and regulations;
(ii) each Company Plan which is intended to be qualified within the meaning of
Section 401(a) of the Code is so qualified and has received a favorable
determination letter as to its qualification (or if maintained pursuant to a
prototype form of instrument the sponsor thereof has received a favorable
opinion letter as to its qualification), and to the Company's knowledge nothing
has occurred, whether by action or failure to act, that could reasonably be
expected to cause the loss of such qualification; and (iii) no Company Plan
provides retiree health or life insurance benefits (whether or not insured), and
neither the Company nor the Subsidiaries have any obligations to provide any
such retiree benefits other than as required pursuant to Section 4980B of the
Code or other applicable law.

                  (c) No Company Plan is a "multiemployer plan" as defined in
Section 4001(a)(3) of ERISA) or a plan subject to the minimum funding
requirements of Section 302 or ERISA or Section 412 of the Code or Title IV of
ERISA, and neither the Company, the Subsidiaries, nor any member of their
Controlled Group has any liability or obligation in respect of, any such
multiemployer plan or plan. With respect to any Company Plan and to the
Company's knowledge, (i) no actions, suits or claims (other than routine claims
for benefits in the ordinary course) are pending or threatened, and (ii) no
administrative investigation, audit or other administrative proceeding by the
Department of Labor, the Pension Benefit Guaranty Corporation, the Internal
Revenue Service or other governmental agencies are pending, threatened or in
progress.

                  3.21 Private Placement. Neither the Company nor any person
acting on the Company's behalf has sold or offered to sell or solicited any
offer to buy the Shares, the Warrants or the Warrant Shares by means of any form
of general solicitation or advertising. Neither the Company nor any of its
Affiliates nor any person acting on the Company's behalf has, directly or
indirectly, at any time within the past six (6) months, made any offer or sale
of any security or solicitation of any offer to buy any security under
circumstances that would (i) eliminate the availability of the exemption from
registration under Regulation D under the Securities Act in connection with the
sale or issuance of the Shares, the Warrants and the Warrant Shares as
contemplated hereby or (ii) cause the offering or issuance of the Shares, the

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<PAGE>

Warrants or the Warrant Shares pursuant to this Agreement or any of the
Transaction Documents to be integrated with prior offerings by the Company for
purposes of any applicable law, regulation or stockholder approval provisions.
None of the Company or any of the Subsidiaries is, or is an Affiliate of, an
"investment company" within the meaning of the Investment Company Act of 1940,
as amended. None of the Company or any of the Subsidiaries is a United States
real property holding corporation within the meaning of the Foreign Investment
in Real Property Tax Act of 1980. No consent, license, permit, waiver approval
or authorization of, or designation, declaration, registration or filing with,
the SEC or any state securities regulatory authority is required in connection
with the offer, sale, issuance or delivery of the Shares, the Warrants or the
Warrant Shares other than the possible filing of Form D with the SEC.

                  3.22 Material Changes. Except as set forth on Schedule 3.22 to
the Disclosure Schedule, since the date of the Balance Sheet, the Company has
conducted its business only in the ordinary course, consistent with past
practice, and since such date there has not occurred: (i) any event, occurrence
or development that has had, or that could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect on the Company or
any of the Subsidiaries; (ii) any amendments or changes in the charter documents
or by-laws of the Company or the Subsidiaries; (iii) any: (A) incurrence,
assumption or guarantee by the Company or the Subsidiaries of any debt for
borrowed money other than (1) equipment leases made in the ordinary course of
business, consistent with past practice and (2) any such incurrence, assumption
or guarantee with respect to an amount of $25,000 or less that has been
disclosed in the SEC Documents; (B) issuance or sale of any securities
convertible into or exchangeable for securities of the Company other than to
directors, employees and consultants pursuant to existing equity compensation or
stock purchase plans of the Company; (C) issuance or sale of options or other
rights to acquire from the Company or the Subsidiaries, directly or indirectly,
securities of the Company or any securities convertible into or exchangeable for
any such securities, other than options issued to directors, employees and
consultants in the ordinary course of business, consistent with past practice;
(D) issuance or sale of any stock, bond or other corporate security other than
to directors, employees and consultants pursuant to existing equity compensation
or stock purchase plans of the Company; (E) declaration or making of any payment
or distribution to stockholders or purchase or redemption of any share of its
capital stock or other security other than to or from directors, officers and
employees of the Company or the Subsidiaries as compensation for or in
connection with services rendered to the Company or the Subsidiaries (as
applicable) or for reimbursement of expenses incurred on behalf of the Company
or the Subsidiaries (as applicable); (F) sale, assignment or transfer of any of
its intangible assets except in the ordinary course of business, consistent with
past practice, or cancellation of any debt or claim except in the ordinary
course of business, consistent with past practice; (G) waiver of any right of
substantial value whether or not in the ordinary course of business; (H)
material change in officer compensation, except in the ordinary course of
business and consistent with past practice; or (I) other commitment (contingent
or otherwise) to do any of the foregoing; (iv) any creation, sufferance or

                                       11
<PAGE>

assumption by the Company or any of the Subsidiaries of any lien on any asset or
any making of any loan, advance or capital contribution to or investment in any
Person, in an aggregate amount which exceeds $25,000 outstanding at any time;
(v) any entry into, amendment of, relinquishment, termination or non-renewal by
the Company or the Subsidiaries of any material contract, license, lease,
transaction, commitment or other right or obligation, other than in the ordinary
course of business, consistent with past practice; or (vi) any transfer or grant
of a right with respect to the Intellectual Property Rights owned or licensed by
the Company or the Subsidiaries, except as among the Company and the
Subsidiaries.

                  3.23 Regulatory Permits. The Company and the Subsidiaries
possess all certificates, approvals, authorizations and permits issued by the
appropriate federal, state, local or foreign regulatory authorities necessary to
conduct their businesses as described in the SEC Documents, except where the
failure to possess such permits does not, and could not have, individually or in
the aggregate, a Material Adverse Effect (the "Material Permits"), and the
Company has not received any written notice of proceedings relating to the
revocation or modification of any Material Permits except as described in the
SEC Documents.

                  3.24 Transactions with Affiliates and Employees. Except as set
forth in the SEC Documents or on Schedule 3.24 to the Disclosure Schedule, none
of the officers or directors of the Company and, to the knowledge of the
Company, none of the employees of the Company, is presently a party to any
transaction or agreement with the Company (other than for services as employees,
officers and directors) exceeding $60,000, including any contract, agreement or
other arrangement providing for the furnishing of services to or by, providing
for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge
of the Company, any entity in which any officer, director, or any such employee
has a substantial interest or is an officer, director, trustee or partner.

                  3.25 Insurance. The Company and the Subsidiaries are insured
by insurers of recognized financial responsibility against such losses and risks
and in such amounts as are prudent and customary for the business in which the
Company and the Subsidiaries are engaged. The Company has no reason to believe
that it will not be able to renew existing insurance coverage for itself and the
Subsidiaries as and when such coverage expires or to obtain similar coverage
from similar insurers as may be necessary or appropriate to continue business.

                  3.26 Solvency. Based on the consolidated financial condition
of the Company and the Subsidiaries as of the date hereof, (i) the fair saleable
value of the Company's assets exceeds the amount that will be required to be
paid on or in respect of the Company's existing debts and other liabilities
(including known and contingent liabilities) as they mature; (ii) the Company's
assets do not constitute unreasonably small capital to carry on its business for
the current fiscal year as now conducted and as proposed to be conducted,
including its capital needs taking into account the particular capital
requirements of the business conducted by the Company, projected capital
requirements and capital availability thereof; and (iii) the current cash flow

                                       12
<PAGE>

of the Company, together with the proceeds the Company would receive were it to
liquidate all of its assets, after taking into account all anticipated uses of
the cash, would be sufficient to pay all amounts on or in respect of its debts
when such amounts are required to be paid. The Company has no present intention
to incur debts beyond its ability to pay such debts as they mature (taking into
account the timing and amounts of cash to be payable on or in respect of its
debt).

                  3.27 Internal Accounting Controls. Except as disclosed in the
SEC Filings, the Company maintains a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are executed in
accordance with management's general or specific authorizations, (ii)
transactions are recorded as necessary to permit preparation of financial
statements in conformity with United States generally accepted accounting
principles and to maintain asset accountability, (iii) access to assets is
permitted only in accordance with management's general or specific
authorizations, (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, and (v) the Company is otherwise in compliance with
the Securities Act, the Exchange Act and all other rules and regulations
promulgated by the SEC and applicable to the Company, including the
Sarbanes-Oxley Act of 2002, as amended.

                  3.28 Disclosure. Neither the Company nor, to the Company's
knowledge, any other Person acting on its behalf and at the direction of the
Company, has provided to any Purchaser or its agents or counsel any information
that in the Company's reasonable judgment, at the time such information was
furnished, constitutes material, non-public information, except such information
as may have been disclosed to certain Board members, who are affiliated with
certain Purchasers (other than Tudor and its Affiliates), in their capacity as
directors of the Company. The Company understands and confirms that each
Purchaser will rely on the representations and covenants contained herein in
effecting the transactions contemplated by this Agreement and the Transaction
Documents, and in the securities of the Company after the Closing. All
disclosure provided to the Purchasers regarding the Company, its business and
the transactions contemplated hereby, including the Schedules to this Agreement
furnished by or on behalf of the Company, taken as a whole is true and correct
and does not contain any untrue statement of material fact or omit to state any
material fact necessary in order to make the statements made therein, in the
light of the circumstances under which they were made, not misleading. No event
or circumstance has occurred or information exists with respect to the Company
or the Subsidiaries or its or their business, properties, prospects, operations
or financial conditions, which, under applicable law, rule or regulation,
requires public disclosure or announcement by the Company but which has not been
so publicly announced or disclosed. The Company acknowledges and agrees that no
Purchaser makes or has made any representations or warranties with respect to
the transactions contemplated hereby other than those specifically set forth in
Section 4.

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

                                       13
<PAGE>

                  4.1 Authorization. All action on the part of such Purchaser
and, if applicable, its officers, directors, managers, members, shareholders
and/or partners necessary for the authorization, execution, delivery and
performance of this Agreement and the Registration Rights Agreement, and the
consummation of the transactions contemplated herein and therein, has been
taken. When executed and delivered, each of this Agreement and the Registration
Rights Agreement will constitute the legal, valid and binding obligation of such
Purchaser, enforceable against such Purchaser in accordance with its terms,
except as such may be limited by bankruptcy, insolvency, reorganization or other
laws affecting creditors' rights generally and by general equitable principles.
Each Purchaser has all requisite corporate power and authority to enter into
each of this Agreement and the Registration Rights Agreement, and to carry out
and perform its obligations under the terms of hereof and thereof.

                  4.2 Purchase Entirely for Own Account. Each Purchaser is
acquiring the Shares, Warrants and Warrant Shares for its own account for
investment and not for resale or with a view to distribution thereof in
violation of the Securities Act.

                  4.3 Investor Status; Etc. Each Purchaser certifies and
represents to the Company 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 any of the Shares, the Warrants or the Warrant
Shares. Each Purchaser's financial condition is such that it is able to bear the
risk of holding the Shares for an indefinite period of time and the risk of loss
of its entire investment. Each Purchaser has sufficient knowledge and experience
in investing in companies similar to the Company so as to be able to evaluate
the risks and merits of its investment in the Company.

                  4.4 Securities Not Registered. Each Purchaser understands that
the Shares, the Warrants and the Warrant Shares have not been registered under
the Securities Act, by reason of their issuance by the Company in a transaction
exempt from the registration requirements of the Securities Act, and that the
Shares, the Warrants and the Warrant Shares must continue to be held by such
Purchaser unless a subsequent disposition thereof is registered under the
Securities Act or is exempt from such registration. Each Purchaser understands
that the exemptions from registration afforded by Rule 144 (the provisions of
which are known to it) promulgated under the Securities Act depend on the
satisfaction of various conditions, and that, if applicable, Rule 144 may afford
the basis for sales only in limited amounts.

                  4.5 No Conflict. The execution and delivery of this Agreement
and the Registration Rights Agreement by each Purchaser, and the consummation of
the transactions contemplated hereby and thereby, will not conflict with or
result in any violation of or default by such Purchaser (with or without notice
or lapse of time, or both) under, or give rise to a right of termination,
cancellation or acceleration of any obligation or to a loss of a material
benefit under (i) any provision of the organizational documents of such
Purchaser or (ii) any agreement or instrument, permit, franchise, license,
judgment, order, statute, law, ordinance, rule or regulations, applicable to
such Purchaser.

                                       14
<PAGE>

                  4.6 Brokers. Such Purchaser has not retained, utilized or been
represented by any broker or finder in connection with the transactions
contemplated by this Agreement.

                  4.7 Consents. All consents, approvals, orders and
authorizations required on the part of such Purchaser in connection with the
execution, delivery or performance of this Agreement and the consummation of the
transactions contemplated herein have been obtained and are effective as of the
date hereof.

                  4.8 Disclosure of Information. Such Purchaser believes it has
received all the information it considers necessary or appropriate for deciding
whether to purchase the Securities. Such Purchaser further represents that it
has had an opportunity to ask questions and receive answers from the Company
regarding the terms and conditions of the offering of the Shares, Warrants and
Warrant Shares and the business, properties, prospects and financial condition
of the Company.

         5.       Conditions Precedent.

                  5.1. Conditions to the Obligation of the Purchasers to
Consummate the Closing. The obligation of each Purchaser to consummate the
Closing and to purchase and pay for the Shares is subject to the satisfaction of
the following conditions precedent:

                  (a) The representations and warranties of the Company
contained herein shall be true and correct on and as of the date hereof with the
same force and effect as though made on and as of the Closing Date. The Company
shall have performed all obligations and conditions herein required to be
performed or complied with by the Company on or prior to the Closing Date.

                  (b) There shall have been no material adverse change (actual
or threatened) in the assets, liabilities (contingent or otherwise), affairs,
business, operations, prospects, or condition (financial or otherwise) of the
Company prior to the Closing Date; and the Company shall have performed all
obligations and conditions herein required to be performed or observed by the
Company on or prior to the Closing Date.

                  (c) No proceeding challenging this Agreement or the
Transaction Documents, or the transactions contemplated hereby or thereby, or
seeking to prohibit, alter, prevent or materially delay the Closing, shall have
been instituted before any court, arbitrator or governmental body, agency or
official or shall be pending against or involving the Company.

                  (d) The sale of the Shares and the issuance of the Warrants
(and the Warrant Shares) to the Purchasers shall not be prohibited by any law,
rule, governmental order or regulation. All necessary consents, approvals,
licenses, permits, orders and authorizations of, or registrations, declarations
and filings with, any governmental or administrative agency or of or with any
other Person with respect to any of the transactions contemplated hereby shall
have been duly obtained or made and shall be in full force and effect.

                                       15
<PAGE>

                  (e) All instruments and corporate proceedings of the Company
in connection with the transactions contemplated by this Agreement and the
Transaction Documents shall be satisfactory in form and substance to each
Purchaser, and each Purchaser shall have received copies (executed or certified,
as may be appropriate) of all documents which the Purchasers may have reasonably
requested in connection with such transactions.

                  (f) Each Purchaser shall have received from Andrews Kurth LLP,
outside counsel to the Company, an opinion addressed to such Purchaser, dated
the Closing Date and substantially in the form of Exhibit A hereto.

                  (g)      The Registration Rights Agreement shall have been
executed and delivered by the Company.

                  (h) Each Purchaser shall have received from the Company an
original stock certificate evidencing the purchase of the Shares and an original
Warrant, in each case for the number of shares of Common Stock and the number of
Warrant Shares, respectively, set forth opposite such Purchaser's name on
Schedule 1 hereto.

                  (i) Each Purchaser shall have received duly executed Transfer
Agent Instructions acknowledged by the Company's transfer agent.

                  (j) The Company shall pay up to an additional aggregate of
$25,000 for the Purchasers' expenses incurred in connection with the
preparation, execution and delivery of this Agreement and the Transaction
Documents, in accordance with Section 8.8 hereof.

                  (k) The Company shall have delivered, in form and substance
satisfactory to each Purchaser, a certificate dated the Closing Date and signed
by the secretary or another officer of the Company, certifying (i) that attached
copies of the Certificate of Incorporation, the By-Laws and resolutions of the
Board approving this Agreement, the Transaction Documents and the transactions
contemplated hereby and thereby, are all true, complete and correct and remain
in full force and effect as of the date hereof, and (ii) as to the incumbency
and specimen signature of each officer of the Company executing this Agreement,
the Transaction Documents and any other document delivered in connection
herewith on behalf of the Company.

                  (l) The Company shall deliver to each Purchaser, a certificate
in form and substance satisfactory to each Purchaser, dated the Closing Date and
signed by the Company's chief financial officer, certifying that (i) the
representations and warranties of the Company contained in Section 3 hereof are
true and correct in all respects on the Closing Date and (ii) the Company has
performed and complied with all of the agreements and conditions set forth or
contemplated herein that are required to be performed or complied with by the
Company on or before the Closing Date.

                                       16
<PAGE>

                  5.2. Conditions to the Obligation of the Company to Consummate
the Closing. The obligation of the Company to consummate the Closing and to
issue and sell the Shares to each Purchaser at the Closing is subject to the
satisfaction of the following conditions precedent:

                  (a) The representations and warranties of the Purchasers
contained herein shall be true and correct in all respects on and as of the
Closing Date with the same force and effect as though made on and as of the
Closing Date.

                  (b) The Registration Rights Agreement shall have been executed
and delivered by the Purchasers.

                  (c) The Purchasers shall have performed all obligations and
conditions herein required to be performed or complied with by the Purchasers on
or prior to the Closing Date.

                  (d) No proceeding challenging this Agreement or the
Transaction Documents, or the transactions contemplated hereby or thereby, or
seeking to prohibit, alter, prevent or materially delay the Closing, shall have
been instituted before any court, arbitrator or governmental body, agency or
official or shall be pending against or involving such Purchaser.

                  (e) The sale of the Shares and the issuance of the Warrants
(and the Warrant Shares) by the Company shall not be prohibited by any law,
rule, governmental order or regulation. All necessary consents, approvals,
licenses, permits, orders and authorizations of, or registrations, declarations
and filings with, any governmental or administrative agency or of any other
Person with respect to any of the transactions contemplated hereby shall have
been duly obtained or made and shall be in full force and effect.

                  (f) All instruments and corporate proceedings in connection
with the transactions contemplated by this Agreement to be consummated at the
Closing shall be satisfactory in form and substance to the Company, and the
Company shall have received counterpart originals, or certified or other copies
of all documents, including without limitation records of corporate or other
proceedings, which it may have reasonably requested in connection therewith.

         6. Certain Covenants and Agreements.

                  6.1. Transfer of Securities. Each Purchaser shall not sell,
assign, pledge, transfer or otherwise dispose of or encumber any of the Shares,
the Warrants or the Warrant Shares, except (i) pursuant to an effective

                                       17
<PAGE>

registration statement under the Securities Act, (ii) to an Affiliate (so long
as such Affiliate agrees to be bound by the terms and provisions of this
Agreement as if, and to the fullest extent as, such Purchaser), or (iii)
pursuant to an available exemption from registration under the Securities Act
(including sales permitted pursuant to Rule 144) and applicable state securities
laws and, if requested by the Company, upon delivery by such Purchaser of either
an opinion of counsel of such Purchaser reasonably satisfactory to the Company
to the effect that the proposed transfer is exempt from or does not require
registration under the Securities Act and applicable state securities laws or a
representation letter of such Purchaser reasonably satisfactory to the Company
setting forth a factual basis for concluding that such proposed transfer is
exempt from or does not require registration under the Securities Act and
applicable state securities laws. Any transfer or purported transfer of the
Shares in violation of this Section 6.1 shall be void. The Company shall not
register any transfer of the Shares in violation of this Section 6.1. The
Company may, and may instruct any transfer agent for the Company, to place such
stop transfer orders as may be required on the transfer books of the Company in
order to ensure compliance with the provisions of this Section 6.1.

                  6.2. Legends.

                  (a) To the extent applicable, each certificate or other
document evidencing the Shares and the Warrant Shares shall be endorsed with the
legend set forth below, and each Purchaser covenants that, except to the extent
such restrictions are waived by the Company, it shall not transfer the shares
represented by any such certificate without complying with the restrictions on
transfer described in this Agreement and the legends endorsed on such
certificate:

         "THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
         UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE OFFERED OR
         SOLD IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER SAID
         ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, or in a transaction not
         subject to, REGISTRATION UNDER SAID ACT."

                  (b) The legend set forth in Section 6.2(a) shall be removed
from the certificates evidencing the Shares and the Warrant Shares, (i)
following any sale of such Shares or Warrant Shares pursuant to Rule 144 or any
effective registration statement, or (ii) if such Shares or Warrant Shares are
eligible for sale under Rule 144(k) (and the holder of such Shares or Warrant
Shares has submitted a written request for removal of the legend indicating that
the holder has complied with the applicable provisions of Rule 144 or such
judicial interpretation or pronouncement), or (iii) if such legend is not

                                       18
<PAGE>

required under applicable requirements of the Securities Act (including judicial
interpretations and pronouncements issued by the Staff of the Commission) (and
the holder of such Shares or Warrant Shares has submitted a written request for
removal of the legend indicating that the holder has complied with the
applicable provisions of Rule 144). The Company shall cause its counsel to issue
a legal opinion to the Company's transfer agent promptly upon the occurrence of
any of the events in clauses (i), (ii) or (iii) above to effect the removal of
the legend on certificates evidencing the Shares or the Warrant Shares and shall
also cause its counsel to issue a "blanket" legal opinion to the Company's
transfer agent promptly after the Effective Date (provided that there is an
effective registration statement covering the resale of the Shares or the
Warrant Shares, as the case may be), if required by the Company's transfer
agent, to allow sales without restriction pursuant to an effective registration
statement. The Company agrees that at such time as such legend is no longer
required under this Section 6.2(b), it will, no later than three (3) business
days following the delivery by a Purchaser to the Company or the Company's
transfer agent of a certificate representing the Shares or Warrant Shares issued
with a restrictive legend, deliver or cause to be delivered to such Purchaser a
certificate representing such Shares or Warrant Shares that is free from all
restrictive and other legends; provided that in the case of removal of the
legend for reasons set forth in clause (ii) above, the holder of such Shares or
Warrant Shares has submitted a written request for removal of the legend
indicating that the holder has complied with the applicable provisions of Rule
144. The Company may not make any notation on its records or give instructions
to any transfer agent of the Company that enlarge the restrictions on transfer
set forth in this Section.

                  6.3 Publicity. Except to the extent required by applicable
laws, rules, regulations or stock exchange requirements, neither (i) the
Company, the Subsidiaries or any of their Affiliates nor (ii) any Purchaser or
any of its Affiliates shall, without the written consent of the other, make any
public announcement or issue any press release with respect to the transactions
contemplated by this Agreement. In no event will either (i) the Company, the
Subsidiaries or any of their Affiliates or (ii) any Purchaser or any of its
Affiliates make any public announcement or issue any press release with respect
to the transactions contemplated by this Agreement without consulting with the
other party, to the extent feasible, as to the content of such public
announcement or press release.

                  6.4 Material, Nonpublic Information. Except as required by
law, the Company and its directors, officers, employees and agents shall not
provide any Purchaser with any material non-public information regarding the
Company or any of the Subsidiaries at any time after the Closing, except such
information as may be required to be disclosed to certain Board members, who are
affiliated with certain Purchasers (other than Tudor and its Affiliates), in
their capacity as directors of the Company. In the event of a breach of the
foregoing covenant following the Effective Date, or in the event that Company is
legally required to make certain disclosures to any Purchaser (and does so)
following the Effective Date, then in addition to any other remedy provided for
herein, in the Transaction Documents or in equity or at law, each Purchaser to
whom information has been disclosed (whether as a result of breach or as
required by law) may request, in writing, that the Company promptly (but in no
event more than five (5) business days after the date of such writing) publicly
disclose, by press release, SEC filing, or otherwise, an appropriate summary of
the information that, in such Purchaser's reasonable judgment, constitutes the
then material non-public information. After such five (5) business-day period,
the Purchaser(s) who was or were in receipt of such material non-public
information shall be automatically authorized to make all of the information, or
any portion thereof, available to the public generally, without incurring any
liability to the Company for such disclosure.

                                       19
<PAGE>

                  6.5 Filing of Information. The Company shall use best efforts
to, and shall, promptly after the date hereof and in any event on or prior to
June 30, 2004, make current in all respects all filings and reports required by
applicable securities laws, including the preparation and filing of all periodic
reports under the Exchange Act, the filing of audited financial statements for
fiscal year 2003, and the filing of any statements required by or pursuant to
the Securities Act. The Company covenants to timely file (or obtain extensions
in respect thereof and file within the applicable grace period) all reports
(other than the periodic reports with respect to fiscal year 2003 and the first
quarter of 2004) required to be filed by the Company pursuant to all applicable
securities laws, including the Exchange Act. At any time if the Company is not
required to file reports pursuant to such laws, it will prepare and furnish to
the Purchasers and make publicly available in accordance with paragraph (c) of
Rule 144 such information as is required for the Purchasers to sell the Shares
and the Warrant Shares under Rule 144. The Company further covenants that it
will take such further action as any holder of Shares or Warrant Shares may
reasonably request to satisfy the provisions of Rule 144 applicable to the
issuer of securities relating to transactions for the sale of securities
pursuant to Rule 144.

                  6.6 Additional Issuance. The Company shall not issue any
capital stock or other securities in connection with the raising of additional
financing or capital until all of the Shares have been registered for resale
pursuant to an effective registration statement and otherwise in accordance with
the terms set forth in the Registration Rights Agreement; provided; however,
that the foregoing shall not prohibit the Company from issuing shares of Common
Stock or securities convertible into or exercisable for Common Stock: (i) upon
conversion of the Warrants or other securities issuable upon conversion of
securities outstanding as of the date hereof, (ii) to employees, consultants,
officers or directors of the Company pursuant to stock option, stock purchase or
stock bonus plans or agreements or other stock incentive plans or arrangements
approved by the Board, which are in existence as of the date hereof, (iii)
pursuant to the acquisition of another business entity or business segment of
any such entity by the Company by merger, purchase of substantially all the
assets or other reorganization or corporate partnering agreement if such
issuance is approved by the Board, (iv) in connection with any stock split,
stock dividend or recapitalization of the Company, (v) with respect to warrants
to purchase Common Stock issued to Tejas and as described in Section 2.4 hereof,
and (vi) in connection with lease lines, bank loans, corporate partnering or
other similar transactions, provided such issuances described in this clause
(vi) are not primarily for the purpose of equity financing and are approved by
the Board.

                  6.7 Use of Proceeds. The Company covenants and agrees that the
proceeds from the sale of the Shares shall be used by the Company for working
capital and general corporate purposes or any other purpose approved by the
Company's board of director, including, without limitation, growth initiatives,
capital expenditures and potential acquisitions; under no circumstances shall
any portion of the proceeds be applied to: (i) the payment of dividends or other

                                       20
<PAGE>

distributions on any capital stock or other securities of the Company; (ii) the
purchase of debt or equity securities of any Person for cash, including the
Company, except in connection with investment of excess cash in high quality
(A1/P1 or better) money market instruments having maturities of one year or
less; (iii) any expenditure not directly related to the business of the Company;
or (iv) the call, repurchase or redemption of any Company equity or
equity-equivalent securities.

                  6.8 Integration. The Company shall not sell, offer for sale or
solicit offers to buy or otherwise negotiate in respect of any security (as
defined in Section 2 of the Securities Act) that would be integrated with the
offer or sale of the Shares in a manner that would require the registration
under the Securities Act of the sale of the Shares or the issuance of the
Warrants or the Warrant Shares to the Purchasers.

                  6.9 Pre-Emptive Right. Each Purchaser shall have the right to
purchase a pro rata share of New Securities (as defined in this Section 6.9)
that the Company may, from time to time, propose to sell and issue. Each
Purchaser's pro rata share, for purposes of this right, is the ratio of the
number of shares of Fully Diluted Common Stock owned by such holder immediately
prior to the issuance of New Securities to the total number of shares of Fully
Diluted Common Stock outstanding immediately prior to the issuance of New
Securities. Each Purchaser shall also have the right of over-allotment to
purchase additional New Securities set forth in paragraph (b) of this Section
6.9. This pre-emptive right shall be subject to the following provisions:

                  (a) "New Securities" shall mean any capital stock (including
Common Stock) of the Company whether now authorized or not, and any rights,
options or warrants to purchase such capital stock, and securities of any type
whatsoever that are, or may become, convertible into or exchangeable for capital
stock; provided that the term "New Securities" does not include securities
issued: (i) upon conversion of the Warrants or other securities issuable upon
conversion of securities outstanding as of the date hereof, (ii) to employees,
consultants, officers or directors of the Company pursuant to stock option,
stock purchase or stock bonus plans or agreements or other stock incentive plans
or arrangements approved by the Board, which are in existence as of the date
hereof, (iii) pursuant to the acquisition of another business entity or business
segment of any such entity by the Company by merger, purchase of substantially
all the assets or other reorganization or corporate partnering agreement if such
issuance is approved by the Board, (iv) in connection with any stock split,
stock dividend or recapitalization of the Company, (v) in connection with lease
lines, bank loans, corporate partnering or other similar transactions, provided
such issuances described in this clause (v) are not primarily for the purpose of
equity financing and are approved by the Board, and (vii) to directors of the
Company as compensation for their service as directors pursuant to a restricted
stock plan to be implemented and approved by the stockholders of the Company;
provided that such issuance of restricted stock shall not exceed 100,000 shares
per year.

                  (b) In the event the Company proposes to undertake an issuance
of New Securities, it shall give each Purchaser certified written notice of its
intention, describing the type of New Securities, their price and the general

                                       21
<PAGE>

terms upon which the Company proposes to issue the same. Each Purchaser shall
have thirty (30) days after any such notice is mailed or delivered to agree to
purchase all or any portion of such Purchaser's pro rata share of such New
Securities for the price and upon the terms specified in the notice by giving
written notice to the Company and stating therein the quantity of New Securities
to be purchased. Each Purchaser shall have the right of over-allotment such that
if any Purchaser fails to exercise its right under this Section 6.9 to purchase
its full pro rata share of New Securities, the other Purchasers may purchase the
portion of such Purchaser's remaining portion on a pro rata share within ten
(10) days from the date such non-purchasing Purchaser fails to exercise its
right hereunder to purchase its full pro rata share of New Securities.

                  (c) In the event the Purchasers fail to exercise the
pre-emptive right within such thirty (30) day period and after the expiration of
the ten (10) day period for the exercise of the over-allotment provisions of
this Section 6.9, the Company shall have ninety (90) days thereafter to sell the
New Securities respecting which the Purchasers' pre-emptive right set forth in
this Section 6.9 was not exercised, at a price and upon terms no more favorable
to the purchasers thereof or to the Company than specified in the Company's
notice to the Purchasers pursuant to Section 6.9(b) above. In the event the
Company has not sold the New Securities respecting which the Purchasers'
preemptive right set forth in the Section 6.9 was not exercised within such
ninety (90) day period, the Company shall not thereafter issue or sell any New
Securities, without first again offering such securities to the Purchasers in
the manner provided in Section 6.9(b) above.

                  6.10 Reservation of Common Stock for Issuance; Listing of
Shares. The Company agrees to reserve from its duly authorized capital stock the
total number of shares of Common Stock issuable upon execution of this Agreement
and upon the exercise in full of the Warrants. The Company agrees that at any
time, if and when its shares of Common Stock are listed on NASDAQ, that it will
use reasonable efforts to promptly list and qualify the Shares and the Warrant
Shares for trading on NASDAQ.

         7.       Indemnification.

                  7.1 By the Company. The Company agrees to indemnify, defend
and hold harmless each Purchaser and its Affiliates and their respective
officers, directors, agents, employees, subsidiaries, partners, members and
controlling persons (collectively, the "Purchaser Indemnitees") to the fullest
extent permitted by law from and against any and all claims, losses,
liabilities, damages, deficiencies, judgments, assessments, fines, settlements,
costs or expenses (including interest, penalties and reasonable fees,
disbursements and other charges of counsel) (collectively, "Losses") based upon,
arising out of or otherwise in respect of any breach by the Company of any
representation, warranty, covenant or agreement of the Company contained in this
Agreement or in the Transaction Documents, or for any Losses claimed by Tejas or
any other broker or placement agent.

                  7.2 Claims All claims for indemnification by a Purchaser
Indemnitee pursuant to this Section 7 shall be made as follows:

                                       22
<PAGE>

                  (a) If a Purchaser Indemnitee has incurred or suffered Losses
for which it is entitled to indemnification under this Section 7, then such
Purchaser Indemnitee shall give prompt written notice of such claim (a "Claim
Notice") to the Company. Each Claim Notice shall state the amount of claimed
Losses (the "Claimed Amount"), if known, and the basis for such claim.

                  (b) Within 30 days after delivery of a Claim Notice, the
Company (the "Indemnifying Party") shall provide to each Purchaser Indemnitee
(the "Indemnified Party"), a written response (the "Response Notice") in which
the Indemnifying Party shall: (i) agree that all of the Claimed Amount is owed
to the Indemnified Party, (ii) agree that part, but not all, of the Claimed
Amount (the "Agreed Amount") is owed to the Indemnified Party, or (iii) contest
that any of the Claimed Amount is owed to the Indemnified Party. The
Indemnifying Party may contest the payment of all or a portion of the Claimed
Amount only based upon a good faith belief that all or such portion of the
Claimed Amount does not constitute Losses for which the Indemnified Party is
entitled to indemnification under this Section 7. If no Response Notice is
delivered by the Indemnifying Party within such 30-day period, then the
Indemnifying Party shall be deemed to have agreed that all of the Claimed Amount
is owed to the Indemnified Party.

                  (c) If the Indemnifying Party in the Response Notice agrees
(or is deemed to have agreed) that all of the Claimed Amount is owed to the
Indemnified Party, then the Indemnifying Party shall owe to the Indemnified
Party an amount equal to the Claimed Amount to be paid in the manner set forth
in this Section 7. If the Indemnifying Party in the Response Notice agrees that
part, but not all, of the Claimed Amount is owed to the Indemnified Party, then
the Indemnifying Party shall owe to the Indemnified Party an amount equal to the
agreed amount set forth in such Response Notice to be paid in the manner set
forth in this Section 7.

                  (d) No delay on the part of the Indemnified Party in notifying
the Indemnifying Party shall relieve the Indemnifying Party of any liability or
obligation hereunder except to the extent of any actual prejudice caused by or
arising out of such delay.

                  7.3. Payment of Claims. An Indemnifying Party shall make
payment of any portion of any Claimed Amount that such Indemnifying Party has
agreed in a Response Notice that it owes to an Indemnified Party, or that such
Indemnifying Party is deemed to have agreed it owes to such Indemnifying Party,
said payment to be made within thirty (30) days after such Response Notice is
delivered by such Indemnifying Party or should have been delivered by such
Indemnifying Party, as the case may be.

                  7.4. Limitations.

                  (a) Time for Claims. No Indemnifying Party will be liable for
any Losses hereunder arising out of a breach of representation or warranty
unless a written claim for indemnification is given by the Indemnified Party to

                                       23
<PAGE>

the Indemnifying Party on or prior to the third anniversary of the date on which
the registration statement covering the resale of the Shares initially became
effective.

                  (b) Maximum Amount. Notwithstanding anything contained herein
to the contrary, no Indemnifying Party will be liable for any Losses hereunder
in excess of $23,187,505.

                  7.5 Applicability; Exclusivity. Notwithstanding any term to
the contrary in this Section 7, the indemnification and contribution provisions
of the Registration Rights Agreement shall govern any claim made with respect to
registration statements filed pursuant thereto or sales made thereunder. The
parties hereby acknowledge and agree that in addition to remedies of the parties
hereto in respect of any and all claims relating to any breach or purported
breach of any representation, warranty, covenant or agreement that is contained
in this Agreement pursuant to the indemnification provisions of this Section 7,
all parties shall always retain the right to pursue and obtain injunctive relief
in addition to any other rights or remedies hereunder.

         8. Miscellaneous Provisions.

                  8.1 Rights Cumulative. Each and all of the various rights,
powers and remedies of the parties shall be considered to be cumulative with and
in addition to any other rights, powers and remedies which such parties may have
at law or in equity in the event of the breach of any of the terms of this
Agreement. The exercise or partial exercise of any right, power or remedy shall
neither constitute the exclusive election thereof nor the waiver of any other
right, power or remedy available to such party.

                  8.2 Pronouns. All pronouns or any variation thereof shall be
deemed to refer to the masculine, feminine or neuter, singular or plural, as the
identity of the person, persons, entity or entities may require.

                  8.3      Notices.

                  (a) Any notices, reports or other correspondence (hereinafter
collectively referred to as "correspondence") required or permitted to be given
hereunder shall be sent by postage prepaid first class mail, overnight courier
or telecopy, or delivered by hand to the party to whom such correspondence is
required or permitted to be given hereunder. The date of giving any notice shall
be the date of its actual receipt.

                                       24
<PAGE>

                  (b) All correspondence to the Company shall be addressed as
                      follows:

                           Motient Corporation
                           300 Knightsbridge Parkway
                           Lincolnshire, IL  60069
                           Attention:  Christopher Downie,
                                       Executive Vice President
                                       and Chief Financial Officer
                           Telecopier: (847) 478-4810

                  with copies to:

                           Motient Corporation
                           300 Knightsbridge Parkway
                           Lincolnshire, IL  60069
                           Attention:  Robert Macklin, Esq.
                           Telecopier: (847) 478-4810

                           Andrews Kurth LLP
                           450 Lexington Avenue
                           New York, NY  10017
                           Attention:  Paul Silverstein, Esq.
                           Telecopier: (212) 850-2929

                           (c) All correspondence to the Purchasers shall be
                               addressed as follows:

                           Tudor Investment Corporation
                           15303 Ventura Boulevard, Suite 900
                           Sherman Oaks, CA  91403
                           Attention:  Darryl L. Schall
                           Telecopier: (203) 552-6248

                  with copies to:

                           Tudor Investment Corporation
                           1275 King Street
                           Greenwich, CT  06831
                           Attention:  Stephen N. Waldman, Esq.
                           Telecopier: (203) 861-5144

                           Bingham McCutchen, LLP
                           150 Federal Street
                           Boston, Massachusetts 02110
                           Attention:  Victor J. Paci, Esq.
                                       Meerie M. Joung, Esq.
                           Telecopier: (617) 951-8736

                                       25
<PAGE>

                  (d) Any entity may change the address to which correspondence
to it is to be addressed by notification as provided for herein.

                  8.4 Captions. The captions and paragraph headings of this
Agreement are solely for the convenience of reference and shall not affect its
interpretation.

                  8.5 Severability. Should any part or provision of this
Agreement be held unenforceable or in conflict with the applicable laws or
regulations of any jurisdiction, the invalid or unenforceable part or provisions
shall be replaced with a provision which accomplishes, to the extent possible,
the original business purpose of such part or provision in a valid and
enforceable manner, and the remainder of this Agreement shall remain binding
upon the parties hereto.

                  8.6 Governing Law. This Agreement shall be governed by and
construed in accordance with the internal and substantive laws of the State of
New York and without regard to any conflicts of laws concepts which would apply
the substantive law of some other jurisdiction.

                  8.7 Waiver. No waiver of any term, provision or condition of
this Agreement, whether by conduct or otherwise, in any one or more instances,
shall be deemed to be, or be construed as, a further or continuing waiver of any
such term, provision or condition or as a waiver of any other term, provision or
condition of this Agreement.

                  8.8 Expenses. The Company shall pay its expenses incurred in
connection with the preparation, execution and delivery of this Agreement and
the Transaction Documents. The Company shall also pay the fees and expenses of
the Purchasers reasonably incurred in connection with the preparation, execution
and delivery of this Agreement and the Transaction Documents (including the
legal fees and expenses of outside counsel to Tudor), in an amount up to
$75,000, of which $50,000 was paid prior to the Closing (and which shall be
non-refundable whether or not the transactions contemplated by this Agreement
close) and up to an additional $25,000 shall be paid upon the Closing. The
Purchasers will pay their expenses exceeding $75,000 incurred in connection with
the preparation, execution and delivery of this Agreement and the Transaction
Documents.

                  8.9 Assignment. The rights and obligations of any party hereto
shall inure to the benefit of and shall be binding upon the authorized
successors and permitted assigns of such party. The Company may not assign this
Agreement or any rights or obligations hereunder without the prior written
consent of Purchasers who hold a majority of the outstanding Shares (the
"Majority Purchasers"). Each Purchaser may assign or transfer any or all of its
rights under this Agreement to any Person provided that such assignee or
transferee agrees in writing to be bound, with respect to the transferred Shares
and the Warrant Shares, by the provisions hereof that apply to such assigning or
transferring Purchaser; whereupon such assignee or transferee shall be deemed to
be a "Purchaser" (and "Tudor" as may be appropriate) for all purposes of this
Agreement.

                                       26
<PAGE>

                  8.10 Survival. The respective representations and warranties
given by the parties hereto shall survive the Closing Date and the consummation
of the transactions contemplated herein for a period of time equal to the time
for which indemnification may be sought hereunder, without regard to any
investigation made by any party. The respective covenants and agreements agreed
to by a party hereto shall survive the Closing Date and the consummation of the
transactions contemplated herein in accordance with their respective terms and
conditions.

                  8.11 Entire Agreement. This Agreement constitutes the entire
agreement between the parties hereto respecting the subject matter hereof and
supersedes all prior agreements, negotiations, understandings, representations
and statements respecting the subject matter hereof, whether written or oral. No
modification, alteration, waiver or change in any of the terms of this Agreement
shall be valid or binding upon the parties hereto unless made in writing and
duly executed by the parties hereto.

                  8.12 Amendments. Any amendment, supplement or modification of
or to any provision of this Agreement, any waiver of any provisions of this
Agreement shall be effective only if made or given in writing and signed by the
Company and the Majority Purchasers; provided, that with respect to any
amendment, supplement, modification or waiver relating to Tudor, the consent or
waiver of Tudor shall also be required.

                  8.13 No Third Party Rights. This Agreement is intended solely
for the benefit of the parties hereto and is not intended to confer any benefits
upon, or create any rights in favor of, any Person (including, without
limitation, any stockholder or debt holder of the Company) other than the
parties hereto.

                  8.14 Counterparts. This Agreement may be executed in any
number of counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same document. The parties hereto
confirm that any facsimile copy of another party's executed counterpart of this
Agreement (or its signature page thereof) will be deemed to be an executed
original thereof.

                           [signature pages to follow]

                                       27
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Common Stock
Purchase Agreement under seal as of the day and year first above written.

                            MOTIENT CORPORATION

                            By:  /s/ Chris Downie
                                 -----------------------------------------------
                            Name:    Christopher Downie
                            Title:   Executive VP & CFO

                            THE RAPTOR GLOBAL PORTFOLIO LTD.
                            By:  Tudor Investment Corporation,
                                 Investment Advisor

                            By:  /s/ William T. Flaherty
                                 ----------------------------------------------
                            Name:    William T. Flaherty
                            Title:   Managing Director

                            THE TUDOR BVI GLOBAL PORTFOLIO, LTD.
                            By:  Tudor Investment Corporation, Trading Advisor

                            By:  /s/ William T. Flaherty
                                 -----------------------------------------------
                            Name:    William T. Flaherty
                            Title:   Managing Director

                            THE ALTAR ROCK FUND L.P.
                            By:  Tudor Investment Corporation, General Partner

                            By:  /s/ William T. Flaherty
                                 ----------------------------------------------
                            Name:    William T. Flaherty
                            Title:   Managing Director

                            TUDOR PROPRIETARY TRADING, L.L.C.

                            By:  /s/ William T. Flaherty
                                 ----------------------------------------------
                            Name:    William T. Flaherty
                            Title:   Managing Director

                                       28
<PAGE>

                            HIGHLAND CRUSADER OFFSHORE PARTNERS, L.P.
                            By:  Highland Capital Management, L.P.
                                 as General Partner

                            By:  /s/ Todd Travers
                                 ----------------------------------------------
                            Name:    Todd Travers
                            Title:   Senior Portfolio Manager

                            YORK DISTRESSED OPPORTUNITIES FUND, L.P.

                            By:  /s/ Adam J. Semler
                                 -----------------------------------------------
                            Name:    Adam J. Semler
                            Title:   CFO

                            YORK SELECT, L.P.

                            By:  /s/ Adam J. Semler
                                 ----------------------------------------------
                            Name:    Adam J. Semler
                            Title:   CFO

                            YORK SELECT UNIT TRUST

                            By:  /s/ Adam J. Semler
                                 ----------------------------------------------
                            Name:    Adam J. Semler
                            Title:   CFO of its Investment Manager

                            M&E ADVISORS LLC

                            By:  /s/ Philip Mandelbaum
                                 ----------------------------------------------
                            Name:    Philip Mandelbaum
                            Title:   CFO

                                       29
<PAGE>

                            CATALYST CREDIT OPPORTUNITY FUND
                            By   Catalyst Investment Management, LLC,
                                 its managing member

                            By:  /s/ Francis X. Gallagher
                                 -----------------------------------------------
                            Name:    Francis X. Gallagher
                            Title:   Principal

                            CATALYST CREDIT OPPORTUNITY FUND
                            OFFSHORE
                            By   Catalyst Investment Management, LLC,
                                 its managing member

                            By:  /s/ Francis X. Gallagher
                                 ----------------------------------------------
                            Name:    Francis X. Gallagher
                            Title:   Principal

                            DCM LTD.
                            By   Catalyst Investment Management, LLC,
                                 its managing member

                            By:  /s/ Francis X. Gallagher
                                 -----------------------------------------------
                            Name:    Francis X. Gallagher
                            Title:   Principal

                            GREYWOLF CAPITAL II L.P.

                            By:  /s/ William Troy
                                 -----------------------------------------------
                            Name:    William Troy
                            Title:   COO

                            GREYWOLF CAPITAL OVERSEAS FUND

                            By:  /s/ William Troy
                                 -----------------------------------------------
                            Name:    William Troy
                            Title:   COO

                                       30
<PAGE>

                            LC CAPITAL MASTER FUND

                            By:  /s/ Richard F. Conway
                                 -----------------------------------------------
                            Name:    Richard F. Conway
                            Title:   Director

                                       31
<PAGE>

                                   Schedule 1
                                   ----------

<TABLE>
<CAPTION>

                             Schedule of Purchasers
                             ----------------------

                                                            No. of Shares of                No.of
                        Name                                 Common Stock              Warrant Shares
                        ----                                 ------------              --------------

<S>                                                              <C>                          <C>
The Raptor Global Portfolio Ltd.                                 1,882,115                    470,529
The Tudor BVI Global Portfolio Ltd.                                418,437                    104,609
Tudor Proprietary Trading, L.L.C.                                  224,221                     56,055
The Altar Rock Fund L.P.                                            20,682                      5,171
Highland Crusader Offshore Partners, L.P.                          545,455                    136,364
York Distressed Opportunities Fund, L.P.                           150,000                     37,500
York Select, L.P.                                                   45,000                     11,250
York Select Unit Trust                                              30,000                      7,500
M&E Advisors LLC                                                   100,000                     25,000
Catalyst Credit Opportunity Fund                                    14,000                      3,500
Catalyst Credit Opportunity Fund Offshore                           34,800                      8,700
DCM Ltd.                                                             1,200                        300
Greywolf Capital II L.P.                                           175,000                     43,750
Greywolf Capital Overseas Fund                                     325,000                     81,250
LC Capital Master Fund                                             250,000                     62,500

                           Total:                                4,215,910                  1,053,978
                           ------                                ---------                  ---------

</TABLE>

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