Document:

Exhibit
10.7

 

AMENDED AND
RESTATED REGISTRATION RIGHTS AGREEMENT

 

AMENDED AND RESTATED REGISTRATION RIGHTS
AGREEMENT, dated as of August 20, 2004 and amended and restated as of
October 14, 2004, among PanAmSat Holding Corporation, a Delaware
corporation (the “Company”), and each of the stockholders of the Company
whose name appears on the signature pages hereof (individually an “Investor
Stockholder” and collectively, the “Investor Stockholders”).

 

RECITALS

 

WHEREAS, PanAmSat Corporation, a Delaware
corporation (“PanAmSat”), entered into that certain Transaction Agreement,
dated as of April 20, 2004 (the “Transaction Agreement”), by and among
Constellation, LLC, a Delaware limited liability company (“Constellation”),
the Company, The DIRECTV Group, Inc., a Delaware corporation (“Parent”),
and PAS Merger Sub, Inc., a Delaware corporation (“Merger Sub”),
pursuant to which on August 20, 2004, Merger Sub merged with and into PanAmSat
and following such merger, PanAmSat repurchased from Parent a number of shares
of common stock, par value $.01 per share (“PanAmSat Common Stock”), of
PanAmSat, owned by Parent, and Constellation or its assignees acquired from
Parent all of the outstanding shares of PanAmSat Common Stock held by Parent
following the repurchase;

 

WHEREAS, on May 17, 2004, Constellation
entered into letter agreements (each, a “Commitment Letter”) with
Carlyle PanAmSat I, L.L.C., and Carlyle PanAmSat II, L.L.C. (together, “Carlyle”),
on the one hand, and with PEP PAS, LLC and PEOP PAS, LLC (together, “Providence”),
on the other hand, pursuant to which Constellation assigned to each of Carlyle
and Providence the right under the Transaction Agreement to purchase from
Parent $149,520,733.93, for a total of $299,041,467.86, of the shares of
PanAmSat Common Stock, at the same price per share paid by Constellation at the
Stock Purchase Closing (as defined in the Transaction Agreement);

 

WHEREAS, each of Constellation, Carlyle and
Providence have contributed their shares of PanAmSat Common Stock to the
Company in exchange for a number of shares of Common Stock (as defined below)
such that, after giving effect to such issuance, Constellation, Carlyle and
Providence will each own the same number of shares of Company Common Stock as
the number of shares of PanAmSat Common Stock owned by such entity prior to the
contribution;

 

WHEREAS, PanAmSat and the Investor
Stockholders are party to the Registration Rights Agreement, dated as of August
20, 2004 (the “Original Agreement”);

 

WHEREAS, the Company desires to become a party
to the Original Agreement and assume PanAmSat’s obligation thereunder to
provide to the Investor Stockholders and to each other Holder (as defined
below) rights to registration under the Securities Act (as defined below) of
Registrable Securities (as defined below), on the terms and subject to the
conditions set forth herein; and

 

 

WHEREAS, following the execution of this
Agreement, PanAmSat shall have no further obligations under the Original
Agreement or this Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing recitals and of the mutual promises hereinafter set forth, the
parties hereto agree as follows:

 

AGREEMENT

 

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

 

“Common Stock”:  The shares of common stock, par value $.01 per share, of the
Company and any stock into which such Common Stock may thereafter be converted
or exchanged.

 

“Demand Party”:  (a) An Investor Stockholder or (b) any other
Holder or Holders, including, without limitation, any Person that may become an
assignee of an Investor Stockholder’s rights hereunder; provided that to
be a Demand Party under this clause (b), a Holder or Holders must either
individually or in aggregate with all other Holders with whom it is acting
together to demand registration own at least 1% of the total number of
Registrable Securities; and provided  further, no transferee of an
Investor Stockholder or of any transferee shall be deemed a Demand Party unless
the right to make such a request was transferred in writing to such transferee
by an Investor Stockholder, a copy of which written agreement shall be provided
to the Company and each other Investor Stockholder.

 

“Exchange Act”:  The Securities Exchange Act of 1934, as
amended, or any similar federal statute then in effect, and a reference to a
particular section thereof shall be deemed to include a reference to the
comparable section, if any, of any such similar federal statute.

 

“Holder”:  Each of the Investor Stockholders and any other holder of
Registrable Securities (including any direct or indirect transferee of an
Investor Stockholder who has acquired Registrable Securities from an Investor
Stockholder not in violation of the Stockholders Agreement and agrees in writing
to be bound by the provisions of this Agreement).

 

“IPO”: means the initial public
offering of Common Stock pursuant to an effective registration statement under
the Securities Act.

 

“IPO Date”: means the first date of
the issuance of Common Stock in an IPO.

 

“Person”:  Any individual, partnership, joint venture, corporation, limited
liability company, trust, unincorporated organization, government or any
department or agency thereof or any other entity.

 

“Registrable Securities”:  Any Common Stock held at any time by the
Investor Stockholders, and any Common Stock which may be issued or distributed
in respect thereof by way of stock dividend or stock split or other
distribution, recapitalization or

 

2

 

reclassification.  Any particular Registrable Securities that
are issued shall cease to be Registrable Securities when (i) a registration
statement with respect to the sale by the Holder of such securities shall have
become effective under the Securities Act and such securities shall have been
disposed of in accordance with such registration statement, (ii) such
securities shall have been distributed to the public pursuant to Rule 144 (or
any successor provision) under the Securities Act, or (iii) such securities
shall have ceased to be outstanding.

 

“Registration Expenses”:  Any and all expenses incident to performance
of or compliance with this Agreement, including, without limitation, (i) all
SEC and stock exchange or National Association of Securities Dealers, Inc. (the
“NASD”) registration and filing fees (including, if applicable, the fees
and expenses of any “qualified independent underwriter,” as such term is
defined in NASD conduct rule 2720, and of its counsel), (ii) all fees and
expenses of complying with securities or blue sky laws (including fees and
disbursements of counsel for the underwriters in connection with blue sky
qualifications of the Registrable Securities), (iii) all printing, messenger
and delivery expenses, (iv) all fees and expenses incurred in connection with
the listing of the Registrable Securities on any securities exchange pursuant
to clause (viii) of Section 4 and all rating agency fees, (v) the fees and
disbursements of counsel for the Company and of its independent public accountants,
including the expenses of any special audits and/or “cold comfort” letters
required by or incident to such performance and compliance, (vi) the reasonable
fees and disbursements of counsel selected pursuant to Section 7 hereof by the
Holders of the Registrable Securities being registered to represent such
Holders in connection with each such registration, (vii) any fees and
disbursements of underwriters customarily paid by the issuers or sellers of
securities, including liability insurance if the Company so desires or if the
underwriters so require, and the reasonable fees and expenses of any special
experts retained in connection with the requested registration, but excluding
underwriting discounts and commissions and transfer taxes, if any, and (viii)
other reasonable out-of-pocket expenses of Holders (provided that such
expenses shall not include expenses of counsel other than those provided for in
clause (vi) above).

 

“Securities Act”:  The Securities Act of 1933, as amended, or
any similar federal statute then in effect, and a reference to a particular
section thereof shall be deemed to include a reference to the comparable
section, if any, of any such similar federal statute.

 

“SEC”:  The Securities and Exchange Commission or any other federal agency
at the time administering the Securities Act or the Exchange Act.

 

“Stockholders Agreement”: The Amended
and Restated Stockholders Agreement, dated as of August 20, 2004 and amended
and restated as of the date hereof, among the Company, Constellation, Providence
and Carlyle.

 

2.             Incidental Registrations.  (a)  Right
to Include Registrable Securities. 
If the Company at any time after IPO Date  proposes to register its Common Stock
under the Securities Act (other than a registration filed by the Company in
connection with the IPO or a registration statement on Form S-4 or S-8, or any
successor or other forms promulgated for similar purposes), whether or not for
sale for its own account (but excluding in a registration under

 

3

 

Section 3
hereof), in a manner which would permit registration of Registrable Securities
for sale to the public under the Securities Act, it will, at each such time,
give prompt written notice to all Holders of Registrable Securities of its
intention to do so and of such Holders’ rights under this Section 2.  Upon the written request of any such Holder
made within 15 days after the receipt of any such notice (which request shall
specify the Registrable Securities intended to be disposed of by such Holder),
the Company will use its best efforts to effect the registration under the
Securities Act of all Registrable Securities which the Company has been so
requested to register by the Holders thereof, to the extent requisite to permit
the disposition of the Registrable Securities so to be registered; provided
that (i) if, at any time after giving written notice of its intention to
register any securities and prior to the effective date of the registration
statement filed in connection with such registration, the Company shall
determine for any reason not to proceed with the proposed registration of the
securities to be sold by it, the Company may, at its election, give written
notice of such determination to each Holder of Registrable Securities and,
thereupon, shall be relieved of its obligation to register any Registrable
Securities in connection with such registration (but not from its obligation to
pay the Registration Expenses in connection therewith), and (ii) if such
registration involves an underwritten offering, all Holders of Registrable
Securities requesting to be included in the Company’s registration must sell
their Registrable Securities to the underwriters selected by the Company on the
same terms and conditions as apply to the Company, with such differences,
including any with respect to indemnification and liability insurance, as may
be customary or appropriate in combined primary and secondary offerings.  If a registration requested pursuant to this
Section 2(a) involves an underwritten public offering, any Holder of
Registrable Securities requesting to be included in such registration may
elect, in writing prior to the effective date of the registration statement
filed in connection with such registration, not to register such securities in
connection with such registration.

 

(b)           Expenses.  The Company will pay all Registration
Expenses in connection with each registration of Registrable Securities
pursuant to this Section 2.

 

(c)           Priority
in Incidental Registrations.  If a
registration pursuant to this Section 2 involves an underwritten offering and
the managing underwriter advises the Company in writing that, in its opinion,
the number of securities requested to be included in such registration exceeds
the number which can be sold in such offering, so as to be likely to have an
adverse effect on the price, timing or distribution of the securities offered
in such offering as contemplated by the Company (other than the Registrable
Securities), then the Company will include in such registration (i) first, 100%
of the securities the Company proposes to sell and (ii) second, to the extent
of the number of Registrable Securities requested to be included in such
registration pursuant to this Section 2 which, in the opinion of such managing
underwriter, can be sold without having the adverse effect referred to above,
the number of Registrable Securities which the Holders have requested to be
included in such registration, such amount to be allocated pro rata among all
requesting Holders on the basis of the relative number of shares of Registrable
Securities then held by each such Holder (provided that any shares thereby
allocated to any such Holder that exceed such Holder’s request will be
reallocated among the remaining requesting Holders in like manner).

 

3.             Registration on Request.  (a)  Request
by the Demand Party.  At any time,
after the IPO Date, upon the written request of the Demand Party requesting
that the Company

 

4

 

effect the
registration under the Securities Act of all or part of such Demand Party’s
Registrable Securities and specifying the amount and intended method of
disposition thereof, the Company will promptly give written notice of such
requested registration to all other Holders of such Registrable Securities, and
thereupon will, as expeditiously as possible, use its best efforts to effect
the registration under the Securities Act of:

 

(i)            such
Registrable Securities which the Company has been so requested to register by
the Demand Party; and

 

(ii)           all
other Registrable Securities of the same class or series as are to be
registered at the request of a Demand Party and which the Company has been
requested to register by any other Holder thereof by written request given to
the Company within 15 days after the giving of such written notice by the
Company (which request shall specify the amount and intended method of
disposition of such Registrable Securities),

 

all to the
extent necessary to permit the disposition (in accordance with the intended
method thereof as aforesaid) of the Registrable Securities so to be registered;
provided that, unless Holders of a majority of the shares of Registrable
Securities held by Holders consent thereto in writing, the Company shall not be
obligated to file a registration statement relating to any registration request
under this Section 3(a) within a period of 180 days after the effective date of
any other registration statement relating to any registration request under
this Section 3(a) or relating to any registration effected under Section 2.

 

(b)           Registration
Statement Form.  If any registration
requested pursuant to this Section 3 which is proposed by the Company to be
effected by the filing of a registration statement on Form S-3 (or any successor
or similar short-form registration statement) shall be in connection with an
underwritten public offering, and if the managing underwriter shall advise the
Company in writing that, in its opinion, the use of another form of
registration statement is of material importance to the success of such
proposed offering, then such registration shall be effected on such other form.

 

(c)           Expenses.  The Company will pay all Registration
Expenses in connection with registrations of each class or series of Registrable
Securities pursuant to this Section 3.

 

(d)           Effective
Registration Statement.  A
registration requested pursuant to this Section 3 will not be deemed to have
been effected unless it has become effective and remains effective for the
period provided in Section 4(ii); provided that if, within 180 days
after it has become effective, the offering of Registrable Securities pursuant
to such registration is interfered with by any stop order, injunction or other
order or requirement of the SEC or other governmental agency or court, such
registration will be deemed not to have been effected.

 

(e)           Selection
of Underwriters.  If a requested
registration pursuant to this Section 3 involves an underwritten offering, the
Holders of a majority of the shares of Registrable Securities which are held by
Holders and which the Company has been requested to register shall have the
right to select the investment banker or bankers and managers to administer the
offering; provided, however, that such investment banker or
bankers and managers shall be reasonably satisfactory to the Company.

 

5

 

(f)            Priority
in Requested Registrations.  If a
requested registration pursuant to this Section 3 involves an underwritten
offering and the managing underwriter advises the Company in writing that, in
its opinion, the number of securities requested to be included in such
registration (including securities of the Company which are not Registrable
Securities) exceeds the number which can be sold in such offering, the Company
will include in such registration only the Registrable Securities of the
Holders requested to be included in such registration.  In the event that the number of Registrable
Securities of the Holders requested to be included in such registration exceeds
the number which, in the opinion of such managing underwriter, can be sold, the
number of such Registrable Securities to be included in such registration shall
be allocated pro rata among all such requesting Holders on the basis of the
relative number of shares of Registrable Securities then held by each such
Holder (provided that any shares thereby allocated to any such Holder
that exceed such Holder’s request shall be reallocated among the remaining
requesting Holders in like manner).  In
the event that the number of Registrable Securities requested to be included in
such registration is less than the number which, in the opinion of the managing
underwriter, can be sold, the Company may include in such registration the
securities the Company proposes to sell up to the number of securities that, in
the opinion of the underwriter, can be sold.

 

(g)           Limitation
on Registration on Request. 
Notwithstanding anything in this Section 3 to the contrary, the Company
shall not be obligated to take any action to effect any registration pursuant
to this Section 3 if the Company has previously effected a number of
registrations upon the request of an Investor Stockholder pursuant to this
Section 3 equaling or exceeding, in accordance with Section 3(d) above, (i)
eight (8) registrations in the aggregate, in the case of Constellation and its
transferees, (ii) four (4) registrations in the aggregate, in the case of
Providence and its transferees, and (iii) four (4) registrations in the
aggregate, in the case of Carlyle and its transferees.  Holders (other than the Investor
Stockholders) will not be entitled to request any registrations pursuant to
this Section 3 other than pursuant to a written agreement with an Investor
Stockholder as described in the definition of a Demand Party in Section 1.

 

(h)           Additional
Rights.  If the Company at any time
grants to any other holders of Common Stock any rights to request the Company
to effect the registration under the Securities Act of any such shares of
Common Stock on terms more favorable to such holders than the terms set forth
in this Section 3, the terms of this Section 3 shall be deemed amended or
supplemented to the extent necessary to provide the Holders such more favorable
rights and benefits.

 

(i)            Postponements
in Requested Registrations.  (i) If
the Company shall at any time furnish to the Holders a certificate signed by
its chairman of the board, chief executive officer, president or any other of
its authorized officers stating that the filing of a registration statement
would require the disclosure of material information the disclosure of which
would, in the good faith judgment of the Board of Directors of the Company,
have a material adverse effect on the business, operations or prospects of the
Company, the Company may postpone the filing (but not the preparation) of a
registration statement required by this Section 3 for up to 45 days and (ii) if
the Board of Directors of the Company determines in its good faith judgment,
that the registration and offering otherwise required by this Section 3 would
have an adverse effect on a then contemplated public offering of the Company’s
Common Stock, the Company may postpone the filing (but not the preparation) of
a registration statement required by this Section 3, during the period starting
with the 30th day immediately preceding the date of the anticipated

 

6

 

filing of, and
ending on a date 90 days (or such shorter period as the managing underwriter
may permit) following the effective date of, the registration statement
relating to such other public offering; provided that the Company shall
at all times in good faith use its best efforts to cause any registration
statement required by this Section 3 to be filed as soon as possible and; provided,
further, that the Company shall not be permitted to postpone
registration pursuant to this Section 3(i) more than once in any 360-day
period.  The Company shall promptly give
the Holders requesting registration thereof pursuant to this Section 3 written
notice of any postponement made in accordance with the preceding sentence.   If the Company gives the Holders such a
notice, the Holders shall have the right, within 15 days after receipt thereof,
to withdraw their request in which case, such request will not be counted for
purposes of Section 3(g).

 

4.             Registration
Procedures.  If and
whenever the Company is required to use its best efforts to effect or cause the
registration of any Registrable Securities under the Securities Act as provided
in this Agreement, the Company will, as expeditiously as possible:

 

(i)            prepare
and, in any event within 90 days after the end of the period within which a
request for registration may be given to the Company pursuant to Section 2 or
3, file with the SEC a registration statement with respect to such Registrable
Securities and use its best efforts to cause such registration statement to
become effective, provided, however, that the Company may
discontinue any registration of its securities which is being effected pursuant
to Section 2 at any time prior to the effective date of the registration
statement relating thereto;

 

(ii)           prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary
to keep such registration statement effective for a period not in excess of 180
days and to comply with the provisions of the Securities Act, the Exchange Act
and the rules and regulations of the SEC thereunder with respect to the
disposition of all securities covered by such registration statement during
such period in accordance with the intended methods of disposition by the
seller or sellers thereof set forth in such registration statement; provided
that before filing a registration statement or prospectus, or any amendments or
supplements thereto, the Company will furnish to counsel selected pursuant to
Section 7 hereof by the Holders of the Registrable Securities covered by such
registration statement to represent such Holders, copies of all documents
proposed to be filed, which documents will be subject to the review of such
counsel;

 

(iii)          furnish
to each seller of such Registrable Securities such number of copies of such
registration statement and of each amendment and supplement thereto (in each
case including all exhibits filed therewith, including any documents
incorporated by reference), such number of copies of the prospectus included in
such registration statement (including each preliminary prospectus and summary
prospectus), in conformity with the requirements of the Securities Act, and
such other documents as such seller may reasonably request in order to
facilitate the disposition of the Registrable Securities by such seller;

 

7

 

(iv)          use
its best efforts to register or qualify such Registrable Securities covered by
such registration under such other securities or blue sky laws in such
jurisdictions as each seller shall reasonably request, and do any and all other
acts and things which may be reasonably necessary or advisable to enable such
seller to consummate the disposition in such jurisdictions of the Registrable
Securities owned by such Seller, except that the Company shall not for any such
purpose be required to qualify generally to do business as a foreign
corporation in any jurisdiction where, but for the requirements of this clause
(iv), it would not be obligated to be so qualified, to subject itself to
taxation in any such jurisdiction or to consent to general service of process
in any such jurisdiction;

 

(v)           use
its best efforts to cause such Registrable Securities covered by such
registration statement to be registered with or approved by such other
governmental agencies or authorities as may be necessary to enable the seller
or sellers thereof to consummate the disposition of such Registrable
Securities;

 

(vi)          notify
each seller of any such Registrable Securities covered by such registration
statement, at any time when a prospectus relating thereto is required to be
delivered under the Securities Act within the appropriate period mentioned in
clause (ii) of this Section 4, of the Company’s becoming aware that the
prospectus included in such registration statement, as then in effect, includes
an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading in the light of the circumstances then existing, and at the request
of any such seller, prepare and furnish to such seller a reasonable number of
copies of an amended or supplemental prospectus as may be necessary so that, as
thereafter delivered to the purchasers of such Registrable Securities, such
prospectus shall not include an untrue statement of a material fact or omit to
state a material fact required to be stated therein or necessary to make the
statements therein not misleading in the light of the circumstances then
existing;

 

(vii)         use
its best efforts to comply with all applicable rules and regulations of the
SEC, and make available to its security holders, as soon as reasonably
practicable (but not more than eighteen months) after the effective date of the
registration statement, an earnings statement which shall satisfy the
provisions of Section 11(a) of the Securities Act and the rules and regulations
promulgated thereunder;

 

(viii)        (A)
use its best efforts to list such Registrable Securities on any securities
exchange on which the Common Stock is then listed if such Registrable Securities
are not already so listed and if such listing is then permitted under the rules
of such exchange; and (B) use its best efforts to provide a transfer agent and
registrar for such Registrable Securities covered by such registration
statement not later than the effective date of such registration statement;

 

(ix)           enter
into such customary agreements (including an underwriting agreement in
customary form), which may include indemnification provisions in favor of
underwriters and other persons in addition to, or in substitution for the
provisions of Section 5 hereof, and take such other actions as sellers of a
majority of shares of such

 

8

 

Registrable Securities or the underwriters,
if any, reasonably request in order to expedite or facilitate the disposition
of such Registrable Securities;

 

(x)            obtain
a “cold comfort” letter or letters from the Company’s independent public
accounts in customary form and covering matters of the type customarily covered
by “cold comfort” letters as the seller or sellers of a majority of shares of
such Registrable Securities shall reasonably request;

 

(xi)           make
available for inspection by any seller of such Registrable Securities covered
by such registration statement, by any underwriter participating in any
disposition to be effected pursuant to such registration statement and by any
attorney, accountant or other agent retained by any such seller or any such
underwriter, all pertinent financial and other records, pertinent corporate
documents and properties of the Company, and cause all of the Company’s
officers, directors and employees to supply all information reasonably
requested by any such seller, underwriter, attorney, accountant or agent in
connection with such registration statement;

 

(xii)          notify
counsel (selected pursuant to Section 7 hereof) for the Holders of Registrable
Securities included in such registration statement and the managing underwriter
or agent, immediately, and confirm the notice in writing (A) when the registration
statement, or any post-effective amendment to the registration statement, shall
have become effective, or any supplement to the prospectus or any amendment
prospectus shall have been filed, (B) of the receipt of any comments from the
SEC, (C) of any request of the SEC to amend the registration statement or amend
or supplement the prospectus or for additional information, and (D) of the
issuance by the SEC of any stop order suspending the effectiveness of the
registration statement or of any order preventing or suspending the use of any
preliminary prospectus, or of the suspension of the qualification of the
registration statement for offering or sale in any jurisdiction, or of the
institution or threatening of any proceedings for any of such purposes;

 

(xiii)         make
every reasonable effort to prevent the issuance of any stop order suspending
the effectiveness of the registration statement or of any order preventing or
suspending the use of any preliminary prospectus and, if any such order is
issued, to obtain the withdrawal of any such order at the earliest possible
moment;

 

(xiv)        if
requested by the managing underwriter or agent or any Holder of Registrable
Securities covered by the registration statement, promptly incorporate in a
prospectus supplement or post-effective amendment such information as the
managing underwriter or agent or such Holder reasonably requests to be included
therein, including, without limitation, with respect to the number of
Registrable Securities being sold by such Holder to such underwriter or agent,
the purchase price being paid therefor by such underwriter or agent and with
respect to any other terms of the underwritten offering of the Registrable
Securities to be sold in such offering; and make all required filings of such
prospectus supplement or post-effective amendment as soon as practicable after
being notified of the matters incorporated in such prospectus supplement or
post-effective amendment;

 

9

 

(xv)         cooperate
with the Holders of Registrable Securities covered by the registration
statement and the managing underwriter or agent, if any, to facilitate the
timely preparation and delivery of certificates (not bearing any restrictive
legends) representing securities to be sold under the registration statement,
and enable such securities to be in such denominations and registered in such
names as the managing underwriter or agent, if any, or such Holders may
request;

 

(xvi)        obtain
for delivery to the Holders of Registrable Securities being registered and to
the underwriter or agent an opinion or opinions from counsel for the Company in
customary form and in form, substance and scope reasonably satisfactory to such
Holders, underwriters or agents and their counsel;

 

(xvii)       cooperate
with each seller of Registrable Securities and each underwriter or agent
participating in the disposition of such Registrable Securities and their
respective counsel in connection with any filings required to be made with the
NASD; and

 

(xviii)      cause
management of the Company to participate in investor “road shows” and other
investor efforts or meetings.

 

The Company may require each seller of
Registrable Securities as to which any registration is being effected to
furnish the Company with such information regarding such seller and pertinent
to the disclosure requirements relating to the registration and the
distribution of such securities as the Company may from time to time reasonably
request in writing.

 

Each Holder of Registrable Securities agrees that,
upon receipt of any notice from the Company of the happening of any event of
the kind described in clause (vi) of this Section 4, such Holder will forthwith
discontinue disposition of Registrable Securities pursuant to the registration
statement covering such Registrable Securities until such Holder’s receipt of
the copies of the supplemented or amended prospectus contemplated by clause
(vi) of this Section 4, and, if so directed by the Company, such Holder will
deliver to the Company (at the Company’s expense) all copies, other than
permanent file copies then in such Holder’s possession, of the prospectus
covering such Registrable Securities current at the time of receipt of such
notice.  In the event the Company shall
give any such notice, the period mentioned in clause (ii) of this Section 4
shall be extended by the number of days during the period from and including
the date of the giving of such notice pursuant to clause (vi) of this Section 4
and including the date when each seller of Registrable Securities covered by
such registration statement shall have received the copies of the supplemented
or amended prospectus contemplated by clause (vi) of this Section 4.

 

5.             Indemnification.  (a)  Indemnification
by the Company.  In the event of any
registration of any securities of the Company under the Securities Act pursuant
to Section 2 or 3, the Company will, and it hereby does, indemnify and hold
harmless, to the extent permitted by law, the seller of any Registrable
Securities covered by such registration statement, each affiliate of such
seller and their respective directors and officers, members or general and
limited partners (including any director, officer, affiliate, employee, agent
and controlling Person of any of the foregoing), each other Person who
participates as an underwriter in the offering or sale of such securities and
each other Person, if any, who controls such seller or any such underwriter
within

 

10

 

the meaning of
the Securities Act (collectively, the “Indemnified Parties”), against
any and all losses, claims, damages or liabilities, joint or several, and
expenses (including reasonable attorney’s fees and reasonable expenses of
investigation) to which such Indemnified Party may become subject under the
Securities Act, common law or otherwise, insofar as such losses, claims,
damages or liabilities (or actions or proceedings in respect thereof, whether
or not such Indemnified Party is a party thereto) arise out of or are based
upon (a) any untrue statement or alleged untrue statement of any material fact
contained in any registration statement under which such securities were
registered under the Securities Act, any preliminary, final or summary
prospectus contained therein, or any amendment or supplement thereto, or (b)
any omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein (in the case of a
prospectus, in light of the circumstances under which they were made) not
misleading, and the Company will reimburse such Indemnified Party for any legal
or any other expenses reasonably incurred by it in connection with
investigating or defending against any such loss, claim, liability, action or
proceeding; provided that the Company shall not be liable to any
Indemnified Party in any such case to the extent that any such loss, claim,
damage, liability (or action or proceeding in respect thereof) or expense
arises out of or is based upon any untrue statement or alleged untrue statement
or omission or alleged omission made in such registration statement or
amendment or supplement thereto or in any such preliminary, final or summary
prospectus in reliance upon and in conformity with written information
furnished to the Company through an instrument duly executed by such seller
specifically stating that it is for use in the preparation thereof; and provided,
further, that the Company will not be liable to any Person who
participates as an underwriter in the offering or sale of Registrable
Securities or any other Person, if any, who controls such underwriter within
the meaning of the Securities Act, under the indemnity agreement in this
Section 5(a) with respect to any preliminary prospectus or the final prospectus
or the final prospectus as amended or supplemented, as the case may be, to the
extent that any such loss, claim, damage or liability of such underwriter or
controlling Person results from the fact that such underwriter sold Registrable
Securities to a person to whom there was not sent or given, at or prior to the
written confirmation of such sale, a copy of the final prospectus or of the
final prospectus as then amended or supplemented, whichever is most recent, if
the Company has previously furnished copies thereof to such underwriter.  For purposes of the last proviso to the
immediately preceding sentence, the term “prospectus” shall not be deemed to
include the documents, if any, incorporated therein by reference, and no Person
who participates as an underwriter in the offering or sale of Registrable
Securities or any other Person, if any, who controls such underwriter within
the meaning of the Securities Act, shall be obligated to send or give any
supplement or amendment to any document incorporated by reference in any
preliminary prospectus or the final prospectus to any person other than a
person to whom such underwriter had delivered such incorporated document or
documents in response to a written request therefor.  Such indemnity shall remain in full force and effect regardless
of any investigation made by or on behalf of such seller or any Indemnified
Party and shall survive the transfer of such securities by such seller.

 

(b)           Indemnification
by the Seller.  The Company may
require, as a condition to including any Registrable Securities in any
registration statement filed in accordance with Section 4 herein, that the
Company shall have received an undertaking reasonably satisfactory to it from
the prospective seller of such Registrable Securities or any underwriter to
indemnify and hold harmless (in the same manner and to the same extent as set
forth in Section 5(a)) the

 

11

 

Company and all
other prospective sellers with respect to any untrue statement or alleged untrue
statement in or omission or alleged omission from such registration statement,
any preliminary, final or summary prospectus contained therein, or any
amendment or supplement, if such untrue statement or alleged untrue statement
or omission or alleged omission was made in reliance upon and in conformity
with written information furnished to the Company through an instrument duly
executed by such seller or underwriter specifically stating that it is for use
in the preparation of such registration statement, preliminary, final or
summary prospectus or amendment or supplement, or a document incorporated by
reference into any of the foregoing. 
Such indemnity shall remain in full force and effect regardless of any
investigation made by or on behalf of the Company or any of the prospective
sellers, or any of their respective affiliates, directors, officers or
controlling Persons and shall survive the transfer of such securities by such
seller.  In no event shall the liability
of any selling Holder of Registrable Securities hereunder be greater in amount
than the dollar amount of the net proceeds received by such Holder upon the
sale of the Registrable Securities giving rise to such indemnification
obligation.

 

(c)           Notices
of Claims, Etc.  Promptly after
receipt by an Indemnified Party hereunder of written notice of the commencement
of any action or proceeding with respect to which a claim for indemnification
may be made pursuant to this Section 5, such Indemnified Party will, if a claim
in respect thereof is to be made against an indemnifying party, give written
notice to the latter of the commencement of such action; provided that
the failure of the Indemnified Party to give notice as provided herein shall
not relieve the indemnifying party of its obligations under this Section 5,
except to the extent that the indemnifying party is actually prejudiced by such
failure to give notice.  In case any
such action is brought against an Indemnified Party, unless in such Indemnified
Party’s reasonable judgment a conflict of interest between such Indemnified
Party and indemnifying parties may exist in respect of such claim, the
indemnifying party will be entitled to participate in and to assume the defense
thereof, jointly with any other indemnifying party similarly notified to the
extent that it may wish, with counsel reasonably satisfactory to such
Indemnified Party, and after notice from the indemnifying party to such
Indemnified Party of its election so to assume the defense thereof, the
indemnifying party will not be liable to such Indemnified Party for any legal
or other expenses subsequently incurred by the latter in connection with the
defense thereof other than reasonable costs of investigation.  No indemnifying party will consent to entry
of any judgment or enter into any settlement which does not include, as an
unconditional term thereof, the giving by the claimant or plaintiff to such
Indemnified Party of a release from all liability in respect to such claim or
litigation.

 

(d)           Contribution.  If the indemnification provided for in this
Section 5 from the indemnifying party is unavailable to an Indemnified Party
hereunder in respect of any losses, claims, damages, liabilities or expenses
referred to herein, then the indemnifying party, in lieu of indemnifying such Indemnified
Party, shall contribute to the amount paid or payable by such Indemnified Party
as a result of such losses, claims, damages, liabilities or expenses in such
proportion as is appropriate to reflect the relative fault of the indemnifying
party and such Indemnified Party in connection with the actions which resulted
in such losses, claims, damages, liabilities or expenses, as well as any other
relevant equitable considerations.  The
relative fault of such indemnifying party and such Indemnified Party shall be
determined by reference to, among other things, whether any action in question,
including any untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact, has been made by, or relates to
information supplied by, such indemnifying party or Indemnified Parties,

 

12

 

and the parties’
relative intent, knowledge, access to information and opportunity to correct or
prevent such action.  The amount paid or
payable by a party under this Section 5(d) as a result of the losses, claims,
damages, liabilities and expenses referred to above shall be deemed to include
any legal or other fees or expenses reasonably incurred by such party in
connection with any investigation or proceeding.

 

The parties hereto agree that it would not be
just and equitable if contribution pursuant to this Section 5(d) were
determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to in the
immediately preceding paragraph.  No
Person guilty of fraudulent misrepresentation (within the meaning of Section
11(f) of the Securities Act) shall be entitled to contribution from any Person
who was not guilty of such fraudulent misrepresentation.

 

(e)           Other
Indemnification.  Indemnification
similar to that specified in the preceding provisions of this Section 5 (with
appropriate modifications) shall be given by the Company and each seller of
Registrable Securities with respect to any required registration or other
qualification of securities under any federal or state law or regulation or
governmental authority other than the Securities Act.

 

(f)            Non-Exclusivity.  The obligations of the parties under this
Section 5 shall be in addition to any liability which any party may otherwise
have to any other party.

 

6.             Rule
144.  The Company
covenants that it will file the reports required to be filed by it under the
Securities Act and the Exchange Act and the rules and regulations adopted by
the SEC thereunder (or, if the Company is not required to file such reports, it
will, upon the request of any Demand Party, make publicly available such
information), and it will take such further action as any Holder of Registrable
Securities (or, if the Company is not required to file reports as provided
above, any Demand Party) may reasonably request, all to the extent required
from time to time to enable such Holder to sell shares of Registrable
Securities without registration under the Securities Act within the limitation
of the exemptions provided by (i) Rule 144 under the Securities Act, as such
Rule may be amended from time to time, or (ii) any similar rule or regulation
hereafter adopted by the SEC.  Upon the
request of any Holder of Registrable Securities, the Company will deliver to
such Holder a written statement as to whether it has complied with such
requirements.  Notwithstanding anything
contained in this Section 6, the Company may deregister under Section 12 of the
Exchange Act if it then is permitted to do so pursuant to the Exchange Act and
the rules and regulations thereunder.

 

7.             Selection
of Counsel.  In
connection with any registration of Registrable Securities pursuant to Section
2 or 3 hereof, the Holders of a majority of the Registrable Securities covered
by any such registration may select one counsel to represent all Holders of
Registrable Securities covered by such registration; provided, however,
that in the event that the counsel selected as provided above is also acting as
counsel to the Company in connection with such registration, the remaining
Holders shall be entitled to select one additional counsel to represent all
such remaining Holders.

 

13

 

8.             Miscellaneous.

 

(a)           Holdback
Agreement.  If any registration
shall be in connection with an underwritten public offering (including the
IPO), each Holder of Registrable Securities agrees not to effect any public
sale or distribution, including any sale pursuant to Rule 144 under the
Securities Act, of any equity securities of the Company, or of any security
convertible into or exchangeable or exercisable for any equity security of the
Company (in each case, other than as part of such underwritten public
offering), within seven days before, or such period not to exceed 90 days (or
180 days in the case of an IPO) as the underwriting agreement may require (or
such lesser period as the managing underwriters may permit) after, the
effective date of such registration, and the Company hereby also so agrees and
agrees to cause each other holder of any equity security, or of any security
convertible into or exchangeable or exercisable for any equity security, of the
Company purchased from the Company (at any time other than in a public offering)
to so agree.

 

(b)           Amendments
and Waivers.  This Agreement may be
amended and the Company may take any action herein prohibited, or omit to
perform any act herein required to be performed by it, only if the Company
shall have obtained the written consent to such amendment, action or omission
to act, of all the Investor Stockholders and each other Holder of Registrable
Securities to whom an Investor Stockholder transfers Registrable Securities so
long as such other Holder owns at least 10% of the total outstanding shares of
Common Stock.  Each Holder of any
Registrable Securities at the time or thereafter outstanding shall be bound by
any consent authorized by this Section 8(b), whether or not such Registrable
Securities shall have been marked to indicate such consent.

 

(c)           Successors,
Assigns and Transferees.  This
Agreement shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns.  In addition, and whether or not any express assignment shall have
been made, the provisions of this Agreement which are for the benefit of the
parties hereto other than the Company shall also be for the benefit of and
enforceable by any subsequent Holder of any Registrable Securities, subject to
the provisions contained herein. 
Without limitation to the foregoing, in the event that an Investor
Stockholder or any of its successors or assigns or any other subsequent Holder
of any Registrable Securities distributes or otherwise transfers any shares of
the Registrable Securities to any of its present or future shareholders,
members, or general or limited partners, the Company hereby acknowledges that
the registration rights granted pursuant to this Agreement shall be transferred
to such shareholders, members or general or limited partners on a pro rata
basis, and that at or after the time of any such distribution or transfer, any
such shareholder, member, general or limited partner or group of shareholders,
members or general or limited partners may designate a Person to act on its
behalf in delivering any notices or making any requests hereunder.

 

(d)           Notices.  All notices and other communications
provided for hereunder shall be in writing and shall be sent by first class
mail, telex, telecopier or hand delivery:

 

14

 

	
  If to the Company:

  	
  PanAmSat Holding
  Corporation

  
	
   

  	
  20 Westport Road

  
	
   

  	
  Wilton, Connecticut
  06897

  
	
   

  	
  Attention:

  	
  James W. Cuminale

  
	
   

  	
  Telecopy:

  	
  203-912-5647

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
  Simpson Thacher &
  Bartlett LLP

  
	
  (which shall not

  	
  425 Lexington Avenue

  
	
  constitute notice)

  	
  New York, New York
  10017

  
	
   

  	
  Attention:

  	
  Gary I. Horowitz

  
	
   

  	
   

  	
  Marni J. Lerner

  
	
   

  	
  Facsimile:

  	
  (212) 455-2502

  
	
   

  	
   

  
	
  If to Constellation:

  	
  Constellation, LLC

  
	
   

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

  
	
   

  	
  9 West 57th
  Street

  
	
   

  	
  New York, New York
  10019

  
	
   

  	
  Attention:

  	
  Alexander Navab

  
	
   

  	
  Telecopy:

  	
  (212) 750-0003

  
	
   

  	
   

  	
   

  
	
  With copies to:

  	
  Simpson Thacher &
  Bartlett LLP

  
	
  (which shall not

  	
  425 Lexington Avenue

  
	
  constitute notice)

  	
  New York, New York
  10017

  
	
   

  	
  Attention:

  	
  Gary I. Horowitz

  
	
   

  	
   

  	
  Marni J. Lerner

  
	
   

  	
  Telecopy:

  	
  (212) 455-2502

  
	
   

  	
   

  
	
  If to Carlyle:

  	
  Carlyle PanAmSat I,
  L.L.C.

  
	
   

  	
  Carlyle PanAmSat II,
  L.L.C.

  
	
   

  	
  1001 Pennsylvania
  Avenue, N.W.

  
	
   

  	
  Suite 220 South

  
	
   

  	
  Washington, D.C. 20004

  
	
   

  	
  Attention:

  	
  Bruce E. Rosenblum

  
	
   

  	
  Telecopy:

  	
   

  
	
   

  	
   

  
	
  With a copy to:

  	
  Latham & Watkins LLP

  
	
  (which shall not

  	
  555 Eleventh Street, NW

  
	
  constitute notice)

  	
  Suite 1000

  
	
   

  	
  Washington, D.C. 20004-1304

  
	
   

  	
  Attention:

  	
  Daniel T. Lennon

  
	
   

  	
  Telecopy:  (202) 637-2201

  

 

15

 

	
  If to Providence:

  	
  PEP PAS, LLC

  
	
   

  	
  PEOP PAS, LLC

  
	
   

  	
  50 Kennedy Plaza

  
	
   

  	
  18th Floor

  
	
   

  	
  Providence, RI 02903

  
	
   

  	
  Attention:

  	
  Paul Salem

  
	
   

  	
  Telecopy:  (401) 751-1709

  
	
   

  	
   

  
	
  With a copy to:

  	
  Latham & Watkins LLP

  
	
  (which shall not

  	
  555 Eleventh Street, NW

  
	
  constitute notice)

  	
  Suite 1000

  
	
   

  	
  Washington, D.C. 20004-1304

  
	
   

  	
  Attention:

  	
  Daniel T. Lennon

  
	
   

  	
  Telecopy:  (202) 637-2201

  

 

If
to any other holder of Registrable Securities, to the address of such other
holder as shown in the stock record book of the Company, or to such other
address as any of the above shall have designated in writing to all of the
other above.

 

All such
notices and communications shall be deemed to have been given or made (A) when
delivered by hand, (B) five business days after being deposited in the mail,
postage prepaid or (C) when telecopied, receipt acknowledged.

 

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

 

(f)            Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Agreement
shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein.

 

(g)           Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be an original, but all of which together
shall constitute one instrument.  This
Agreement may be executed by facsimile signature(s).

 

(h)           Governing
Law; Submission to Jurisdiction. 
This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of New York.  The parties to this Agreement hereby agree to submit to the
jurisdiction of the courts of the State of New York, the courts of the United
States of America for the Southern District of New York, and appellate courts
from any thereof in any action or proceeding arising out of or relating to this
Agreement.

 

16

 

(i)            Specific
Performance.  Each party hereto
acknowledges that money damages would not be an adequate remedy in the event
that any of the covenants or agreements in this Agreement are not performed in
accordance with its terms, and it is therefore agreed that in addition to and
without limiting any other remedy or right it may have, the non-breaching party
will have the right to an injunction, temporary restraining order or other
equitable relief in any court of competent jurisdiction enjoining any such
breach and enforcing specifically the terms and provisions hereof.

 

(j)            Further
Assurances  At any time or from time
to time after the date hereof, the parties agree to cooperate with each other,
and at the request of any other party, to execute and deliver any further
instruments or documents and to take all such further action as the other party
may reasonably request in order to evidence or effectuate the consummation of
the transactions contemplated hereby and to otherwise carry out the intent of
the parties hereunder.  

 

(l)            Termination  The provisions of this Agreement (other than
Section 5) shall terminate at such time as there shall be no Registrable
Securities outstanding.  Nothing herein
shall relieve any party from any liability for the breach of any of the
agreements set forth in this Agreement.

 

17

 

IN WITNESS WHEREOF, each of the undersigned
has executed this Agreement or caused this Agreement to be duly executed on its
behalf as of the date first written above.

 

	
   

  	
  PANAMSAT HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James W. Cuminale

  	
   

  
	
   

  	
   

  	
  Name: James W. Cuminale

  
	
   

  	
   

  	
  Title: Executive Vice President and General Counsel

  
	
   

  	
   

  
	
   

  	
  CONSTELLATION, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alexander Navab

  	
   

  
	
   

  	
   

  	
  Name: Alexander Navab

  
	
   

  	
   

  	
  Title: President

  
	
   

  	
   

  
	
   

  	
  CARLYLE PANAMSAT I, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Rosenblum

  	
   

  
	
   

  	
   

  	
  Name: Bruce Rosenblum

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
  CARLYLE PANAMSAT II, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Rosenblum

  	
   

  
	
   

  	
   

  	
  Name: Bruce Rosenblum

  
	
   

  	
   

  	
  Title: Managing Director

  
	
   

  	
   

  
	
   

  	
  PEP PAS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Salem

  	
   

  
	
   

  	
   

  	
  Name: Paul Salem

  
	
   

  	
   

  	
  Title: 

  
	
   

  	
   

  
	
   

  	
  PEOP PAS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Salem

  	
   

  
	
   

  	
   

  	
  Name: Paul Salem

  
	
   

  	
   

  	
  Title:

  

 

18Exhibit
10.8

 

 

 

AMENDED AND RESTATED

STOCKHOLDERS AGREEMENT

of

PANAMSAT
HOLDING CORPORATION

 

 

dated
as of August 20, 2004

and
amended and restated as of October 14, 2004

 

 

 

 

TABLE OF CONTENTS

 

	
  RECITALS

  	
   

  
	
   

  	
   

  
	
  ARTICLE I DEFINITIONS

  	
   

  
	
  SECTION 1.1.  
  Certain Defined Terms

  	
   

  
	
  SECTION
  1.2.   Other Definitional Provisions

  	
   

  
	
   

  	
   

  
	
  ARTICLE II CORPORATE GOVERNANCE

  	
   

  
	
  SECTION 2.1.  
  Board Representation

  	
   

  
	
  SECTION
  2.2.   Committees

  	
   

  
	
  SECTION 2.3.  
  Consent Rights

  	
   

  
	
  SECTION
  2.4.   Available Financial Information

  	
   

  
	
  SECTION 2.5.  
  Access

  	
   

  
	
  SECTION
  2.6.   Termination of Rights

  	
   

  
	
  SECTION
  2.7.   Corporate Opportunities

  	
   

  
	
  SECTION
  2.8.   Non-Competition

  	
   

  
	
   

  	
   

  
	
  ARTICLE III
  TRANSFERS

  	
   

  
	
  SECTION
  3.1.   Rights and Obligations of Transferees

  	
   

  
	
  SECTION
  3.2.   Transfer Restrictions

  	
   

  
	
  SECTION
  3.3.   Right of First Offer

  	
   

  
	
  SECTION
  3.4.   Right of Co-Sale on Transfers by Stockholders

  	
   

  
	
  SECTION
  3.5.   Drag Along Right

  	
   

  
	
  SECTION
  3.6.   Void Transfers

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV
  EQUITY PURCHASE RIGHTS

  	
   

  
	
  SECTION
  4.1.   Equity Purchase Rights

  	
   

  
	
   

  	
   

  
	
  ARTICLE V MISCELLANEOUS

  	
   

  
	
  SECTION
  5.1.   Stockholder Indemnification; Reimbursement of Expenses

  	
   

  
	
  SECTION
  5.2.   Termination

  	
   

  
	
  SECTION
  5.3.   Amendments and Waivers

  	
   

  
	
  SECTION
  5.4.   Successors, Assigns and Transferees

  	
   

  
	
  SECTION
  5.5.   Legend

  	
   

  
	
  SECTION
  5.6.   Notices

  	
   

  
	
  SECTION
  5.7.   Further Assurances

  	
   

  
	
  SECTION
  5.8.   Entire Agreement

  	
   

  
	
  SECTION
  5.9.   Restrictions on Other Agreements; Bylaws

  	
   

  
	
  SECTION
  5.10.   Delays or Omissions

  	
   

  
	
  SECTION
  5.11.   Governing Law; Jurisdiction; Waiver of Jury Trial

  	
   

  
	
  SECTION
  5.12.   Severability

  	
   

  
	
  SECTION
  5.13.   Enforcement

  	
   

  
	
  SECTION
  5.14.   Titles and Subtitles

  	
   

  
	
  SECTION
  5.15.   No Recourse

  	
   

  
	
  SECTION
  5.16.   Counterparts; Facsimile Signatures

  	
   

  

 

i

 

	
  FSS Operators

  	
   

  
	
   

  	
   

  
	
  Exhibits

  	
   

  
	
   

  	
   

  
	
  Exhibit A — Assignment and Assumption Agreement

  	
   

  

 

ii

 

THIS AMENDED AND RESTATED STOCKHOLDERS
AGREEMENT (this “Agreement”) is entered as of October 14, 2004, among
PANAMSAT HOLDING CORPORATION, a Delaware corporation (the “Company”),
PANAMSAT CORPORATION, a Delaware corporation (“PanAmSat”), and each of
the Stockholders (as defined below) and each of the other parties signatory
hereto.

 

RECITALS

 

WHEREAS, PanAmSat entered into that certain
Transaction Agreement, dated as of April 20, 2004 (the “Transaction
Agreement”), by and among Constellation, LLC, a Delaware limited liability
company (“Constellation”), PanAmSat, The DIRECTV Group, Inc., a Delaware
corporation (“Parent”), and PAS Merger Sub, Inc., a Delaware corporation
(“Merger Sub”), pursuant to which on August 20, 2004, first, Merger Sub
merged with and into PanAmSat; second, following such merger, PanAmSat
repurchased from Parent a number of shares of common stock, par value $0.01 per
share, of PanAmSat (the “PanAmSat Stock”) owned by Parent; and, third,
following such repurchase Constellation acquired from Parent all of the
outstanding shares of PanAmSat Stock held by Parent;

 

WHEREAS, on May 17, 2004, Constellation
entered into letter agreements (each, a “Commitment Letter”) with
Carlyle PanAmSat I, L.L.C., and Carlyle PanAmSat II, L.L.C. (together, “Carlyle”),
on the one hand, and with PEP PAS, LLC and PEOP PAS, LLC (together, “Providence”),
on the other hand, pursuant to which Constellation assigned to each of Carlyle
and Providence the right under the Transaction Agreement to purchase from
Parent $149,520,733.93, for a total of $299,041,467.86, of the shares of
PanAmSat Stock, at the same price per share paid by Constellation at the Stock
Purchase Closing (as defined in the Transaction Agreement);

 

WHEREAS, following the Stock Purchase
Closing, Constellation beneficially owned approximately 44% of the Common
Stock, and Carlyle and Providence each beneficially owned approximately 27% of
the Common Stock (each of Constellation, Carlyle and Providence, a “Stockholder”
and together, the “Stockholders”);

 

WHEREAS, each of Constellation, Carlyle and
Providence have contributed their shares of PanAmSat Stock to the Company in
exchange for a number of shares of common stock, par value $.01 per share (the
“Common Stock”), of the Company such that, after giving effect to such
issuance, Constellation, Carlyle and Providence each own the same number of
shares of the Company as such entity owned of PanAmSat Stock;

 

WHEREAS, each of the Stockholders and
PanAmSat are party to the Stockholders Agreement, dated as of August 20, 2004,
(the “Original Agreement”) and the Company desires to become a party to
the Original Agreement and assume PanAmSat’s obligations thereunder; and

 

WHEREAS, each of the Stockholders desires to
promote the interests of the Company and PanAmSat and the mutual interests of
Stockholders by establishing herein certain terms and conditions upon which the
shares of Common Stock will be held, including provisions restricting the
transfer of shares of Common Stock, and providing for certain other matters.

 

 

NOW, THEREFORE, in consideration of the
foregoing recitals and of the mutual promises hereinafter set forth, the Company,
PanAmSat and the Stockholders hereby agree as follows:

 

ARTICLE I

 

DEFINITIONS

 

SECTION 1.1.   Certain Defined
Terms.  As used herein, the
following terms shall have the following meanings: 

 

“Acceptance Notice” has the meaning
assigned to such term in Section 3.3(b).

 

“Affiliate” means, with respect to any
Person, (i) any Person directly or indirectly controlling, controlled by or
under common control with such Person, (ii) any Person directly or indirectly
owning or controlling ten percent (10%) or more of any class of outstanding
equity securities of such Person or (iii) any officer, director, general
partner or trustee of any such Person described in clause (i) or (ii).

 

“beneficial owner” or “beneficially
own” has the meaning given such term in Rule 13d-3 under the Exchange Act
and a Person’s beneficial ownership of Common Stock or other Voting Securities
of the Company shall be calculated in accordance with the provisions of such
Rule; provided, however, that for purposes of determining
beneficial ownership, (i) a Person shall be deemed to be the beneficial owner
of any security which may be acquired by such Person, whether within sixty (60)
days or thereafter, upon the conversion, exchange or exercise of any warrants,
options, rights or other securities and (ii) no Person shall be deemed to
beneficially own any security solely as a result of such Person’s execution of
this Agreement.

 

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

 

“Business Day” means any day that is
not a Saturday, a Sunday or other day on which banks are required or authorized
by law to be closed in the City of New York.

 

“Bylaws” means the Bylaws of the
Company, as in effect on the date hereof and as the same may be amended,
supplemented or otherwise modified from time to time in accordance with the
terms thereof, the terms of the Charter and the terms of this Agreement.

 

“Carlyle” has the meaning assigned to
such term in the recitals.

 

“Carlyle Designee” means any Director
designated by Carlyle pursuant to Section 2.1(a) of this Agreement.

 

“Carlyle Group Designee” has the
meaning assigned to such term in Section 2.1(a).

 

“Carlyle Fund” has the meaning
assigned to such term in Section 2.1(a).

 

2

 

“Carlyle VCOC Designee” has the
meaning assigned to such term in Section 2.1(a).

 

“CEO Designee” has the meaning
assigned to such term in Section 2.1(a).

 

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

 

“Charter” means the Certificate of
Incorporation of the Company, as in effect on the date hereof and as the same
may be amended, supplemented or otherwise modified from time to time in
accordance with the terms thereof and the terms of this Agreement.

 

“Common Stock” means the common stock,
par value $0.01 per share, of the Company and any securities issued in respect
thereof, or in substitution therefor, in connection with any stock split,
dividend or combination, or any reclassification, recapitalization, merger,
consolidation, exchange or other similar reorganization.

 

“Company Competitor” means any Person
that is primarily engaged in any business that directly or indirectly competes with the
business of the Company and its Subsidiaries in (i) the sale or lease of, or
the provision of satellite services via, transponder capacity on satellites
operating in geostationary earth orbit; or (ii) the provision of telemetry,
tracking and control services for such satellites and for other satellites
operating in geostationary earth orbit.

 

“Competing Action” has the meaning
assigned to such term in Section 2.7.

 

“Competing Enterprise” has the meaning
assigned to such term in Section 2.7.

 

“Constellation” has the meaning
assigned to such term in the recitals.

 

“Constellation Designee” means any
Director designated by Constellation pursuant to Section 2.1(a) of this
Agreement.

 

“control” (including the terms “controlled
by” and “under common control with”), with respect to the
relationship between or among two or more Persons, means the possession,
directly or indirectly, of the power to direct or cause the direction of the
affairs or management of a Person, whether through the ownership of voting
securities, as trustee or executor, by contract or otherwise.

 

3

 

“Controlled Affiliate” means, with
respect to any Person, (i) any Person directly or indirectly controlling,
controlled by or under common control with such Person, or (ii) any Person
directly or indirectly owning or controlling an amount of shares of any class
of outstanding equity securities of such Person sufficient to (or otherwise
having the right to) elect a majority of the board of directors or similar
governing body of such Person.

 

“Co-Sale Participant” has the meaning
assigned to such term in Section 3.4(a).

 

“Director” means any member of the
Board.

 

“Drag Along Notice” has the meaning
assigned to such term in Section 3.5(d).

 

“Drag Transaction” has the meaning
assigned to such term in Section 3.5(b).

 

“Equity Purchase Shares” has the
meaning assigned to such term in Section 4.1(a).

 

“Equity Securities” means any and all
shares of Common Stock of the Company, securities of the Company convertible
into, or exchangeable or exercisable for, such shares, and options, warrants or
other rights to acquire such shares.

 

“Exchange Act” means the Securities
Exchange Act of 1934, as amended, and the rules and regulations promulgated
thereunder.

 

“Exempt Transaction” means any
acquisition or disposition (whether through merger, consolidation or otherwise)
(i) which has a purchase price (including any assumed indebtedness and valuing
any non-cash consideration at its Fair Market Value) of less than fifty million
dollars ($50,000,000) and (ii) which, together with all other Exempt
Transactions after the Stock Purchase Closing Date, has an aggregate purchase
price (including any assumed indebtedness and valuing any non-cash
consideration at its Fair Market Value), of less than two hundred million
dollars ($200,000,000); provided that no transaction described herein
with any Affiliate of any Stockholder shall constitute an Exempt Transaction.

 

“Exercising Stockholder” has the
meaning assigned to such term in Section 4.1(d).

 

“Fair Market Value” means with respect
to Common Stock (i) from and after the consummation of an IPO, the average of
the closing sale prices of shares on the stock exchange or national market on
which the shares are principally trading for a period of 30 trading days ending
on the date in question, or (ii) prior to the consummation of an IPO, the fair
market value of the shares as determined in good faith by the Board; and with
respect to any other non-cash consideration, the fair market value of such
non-cash consideration as determined in good faith  by the Board.

 

“FCC” means the United States Federal
Communications Commission.

 

“First Offer Price” has the meaning
assigned to such term in Section 3.3(a).

 

4

 

“Fully-Diluted Basis” with respect to
Common Stock or Voting Securities means the number of shares of Common Stock or
Voting Securities, as the case may be, which are issued and outstanding or
owned or held, as applicable, at the date of determination plus the number of
shares of Common Stock or Voting Securities, as the case may be, issuable
pursuant to any securities (other than, in the case of Voting Securities, other
Voting Securities that the initial Voting Securities are convertible into or
exchangeable or exercisable for), warrants, rights or options then outstanding,
convertible into or exchangeable or exercisable for (whether or not subject to
contingencies or passage of time, or both), Common Stock or Voting Securities,
as the case may be.

 

“GAAP” means generally accepted
accounting principles, as in effect in the United States of America from time
to time.

 

“Group” has the meaning assigned to
such term in Section 13(d)(3) of the Exchange Act.

 

“IPO” means an offering of Common
Stock pursuant to a registration statement filed in accordance with the
Securities Act.

 

“Issuance Notice” has the meaning
assigned to such term in Section 4.1(b).

 

“KKR Fund” has the meaning assigned to
such term in Section 2.1(a).

 

“KKR Group Designee” has the meaning
assigned to such term in Section 2.1(a).

 

“KKR VCOC Designee” has the meaning
assigned to such term in Section 2.1(a).

 

“Losses” has the meaning assigned to
such term in Section 5.1.

 

“New Securities” means shares of
Equity Securities of the Company (other than (i) options to purchase Common
Stock and shares of Common Stock issued to employees, officers or directors pursuant
to any stock options, employee stock purchase or similar equity-based plans
approved by the Board and Common Stock issued upon exercise of such options,
and (ii) Equity Securities issued in connection with any transaction approved
pursuant to clauses (xii) or (xiii)(A) of Section 2.3(a) or any Exempt
Transactions).

 

“Non-Purchasing Stockholder” has the
meaning assigned to such term in Section 4.1(d).

 

“Offer Notice” has the meaning
assigned to such term in Section 3.3(a).

 

“Offered Securities” has the meaning
assigned to such term in Section 3.3(a).

 

“Offering Holder” has the meaning
assigned to such term in Section 3.3(a).

 

“Original Shares” shall mean, when
used in reference to any one or more Stockholders, the shares of PanAmSat Stock
sold to such Stockholders pursuant to the Transaction Agreement or a Commitment
Letter, as applicable, or any shares or other securities

 

5

 

which such shares of PanAmSat Stock may have
been converted into or exchanged for in connection with any exchange,
reclassification, dividend, distribution, stock split, combination,
subdivision, merger, spin-off, re-capitalization, re-organization or similar
transaction.

 

“Parent” has the meaning assigned to
such term in the recitals.

 

“Permitted Transferee” shall mean (i)
the owners of a Stockholder’s equity interests receiving capital stock of the
Company in connection with the liquidation of, or a distribution with respect
to an equity interest in, such Stockholder; or (ii) an Affiliate (other than
any “portfolio company” described below) of a Stockholder; provided, however,
that in both cases such Transferee shall agree in a writing in the form
attached as Exhibit A hereto to be bound by and to comply with all applicable
provisions of this Agreement; provided, further, however,
that in no event shall (A) the Company or any of its Subsidiaries,
(B) any “portfolio company” (as such term is customarily used among
institutional investors) of any Stockholder or any entity controlled by any
portfolio company of any Stockholder or (C) any Company Competitor (whether or
not an Affiliate of the Transferring Stockholder) constitute a “Permitted
Transferee”.

 

“Person” means any individual,
corporation, limited liability company, limited or general partnership, joint
venture, association, joint-stock company, trust, unincorporated organization,
government or any agency or political subdivisions thereof or any Group
comprised of two or more of the foregoing.

 

“Pro Rata Portion” means:

 

(i)            for the purposes of
Article IV, with respect to any Stockholder, on any issuance date for New
Securities, the number or amount of New Securities equal to the product of (i)
the total number or amount of New Securities to be issued by the Company on
such date and (ii) the fraction determined by dividing (A) the number of shares
of Common Stock beneficially owned by such Stockholder and its Affiliates
immediately prior to such issuance by (B) the total number of shares of Common
Stock outstanding on such date immediately prior to such issuance on a
Fully-Diluted Basis;

 

(ii)           for the purposes of
Section 3.3, with respect to any ROFO Recipient, with respect to any proposed
Transfer of Offered Securities, on the applicable Transfer Date, the number or
amount of Offered Securities equal to the product of (i) the total number or
amount of Offered Securities to be offered to the ROFO Recipients and (ii) the
fraction determined by dividing (A) the number of shares of Common Stock
beneficially owned by such ROFO Recipient and its Affiliates by (B) the total
number of shares of Common Stock beneficially owned by all of the ROFO
Recipients and their Affiliates as of such date; provided, however,
that for the purpose of determining the Pro Rata Portion of the Section 3.3
Non-Electing Shares referred to in the third sentence of Section 3.3(c), (1)
the reference to “Offered Securities” in clause (i) of this subsection shall be
a reference to “Section 3.3 Non-Electing Shares” and (2) the total number of
shares of Common Stock referred to in clause (B) of this subsection (ii) shall
not include the Common Stock of the holder of the Section 3.3 Non-Electing
Shares; and

 

6

 

(iii)          subject to any
co-sale rights of any management stockholder set forth in any sale
participation agreement, for the purposes of Section 3.4, with respect to any
Co-Sale Participant, with respect to any proposed Transfer of Transferred
Securities, on the applicable Transfer date, the number or amount of
Transferred Securities equal to the product of (i) the total number or amount
of Transferred Securities to be Transferred to the proposed Transferee and (ii)
the fraction determined by dividing (A) the number of shares of Common Stock
beneficially owned by such Co-Sale Participant and its Affiliates by (B) the
total number of shares of Common Stock beneficially owned by all of the
Stockholders and their Affiliates as of such date; provided, however,
that for the purpose of determining the Pro Rata Portion of the Section 3.4
Non-Electing Shares referred to in the fifth sentence of Section 3.4(a), (1)
the reference to “Transferred Securities” in clause (i) of this subsection
shall be a reference to “Section 3.4 Non-Electing Shares” and (2) the total
number of shares of Common Stock referred to in clause (B) of this subsection
(iii) shall not include the Common Stock of the Transferring Stockholder or the
holder of the Section 3.4 Non-Electing Shares.

 

“Pro Rata
Repurchase” has the meaning assigned to such term in clause (iv) of Section
2.3(a).

 

“Providence”
has the meaning assigned to such term in the recitals.

 

“Providence Designee” means any
Director designated by Providence pursuant to Section 2.1 of this Agreement.

 

“Providence VCOC Designee” has the
meaning assigned to such term in Section 2.1(a).

 

“Registration Rights Agreement” means
the Amended and Restated Registration Rights Agreement, dated as of August 20,
2004 and amended and restated as of the date hereof, among the Company and each
of the Stockholders.

 

“Repurchase” has the meaning assigned
to such term in Section 2.3(a)(iv).

 

“Required Directors” has the meaning
assigned to such term in Section 2.3.

 

“Reserved Employee Shares” shall mean
(i) shares of Common Stock reserved for issuance upon the exercise of options
outstanding as of the Stock Purchase Closing Date under the PanAmSat 1997
Long-Term Incentive Plan, as amended, and shares of Common Stock to be issued
upon exercise of such options (as appropriately adjusted for any stock
dividends, combinations, splits or the like) and (ii) additional options to
purchase Common Stock (and shares of Common Stock issuable upon the exercise
thereof) to employees, officers, directors or consultants pursuant to any stock
option, employee stock purchase or similar equity-based plans approved by the
Board (or the Board of Directors of PanAmSat, as the case may be) (as
appropriately adjusted for any subsequent stock dividends, combinations, splits
or the like), including the 2004 Stock Option Plan for Key Employees of PanAmSat
Corporation and its Subsidiaries.

 

“ROFO Recipients” has the meaning
assigned to such term in Section 3.3(a).

 

7

 

“Section 3.3 Non-Electing Shares” has
the meaning assigned to such term in Section 3.3(c).

 

“Section 3.4 Non-Electing Shares” has
the meaning assigned to such term in Section 3.4(a).

 

“Section 3.5 Transferring Stockholder(s)”
has the meaning assigned to such term in Section 3.5(a).

 

“Securities Act” means the Securities
Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

“Selling Stockholders” has the meaning
assigned to such term in Section 3.5(a).

 

“Stockholder” has the meaning set
forth in the recitals.

 

“Stockholder Designees” has the
meaning assigned to such term in Section 2.1(a).

 

“Stockholder Indemnitee” has the
meaning assigned to such term in Section 5.1.

 

“Stock Purchase Closing” means the
closing of the purchase of the shares of Parent by the Stockholders pursuant to
the Transaction Agreement.

 

“Stock Purchase Closing Date” means
August 20, 2004.

 

“Subsidiary” means (i) any corporation
of which a majority of the securities entitled to vote generally in the
election of directors thereof, at the time as of which any determination is
being made, are owned by another entity, either directly or indirectly, and
(ii) any joint venture, general or limited partnership, limited liability
company or other legal entity in which an entity is the record or beneficial
owner, directly or indirectly, of a majority of the voting interests or the
general partner.

 

“Tax Separation Agreement” means the
Tax Separation Agreement, dated April 20, 2004, by and between Parent and
PanAmSat.

 

“Transaction Agreement” has the
meaning assigned to such term in the recitals.

 

“Transition Services Agreement” means
the Transition Services Agreement, dated April 20, 2004, by and between Parent,
PanAmSat and DIRECTV Operations, LLC, a California limited liability
corporation.

 

“Transfer” means, directly or
indirectly, to sell, transfer, assign, pledge, encumber, hypothecate or
similarly dispose of, either voluntarily or involuntarily, or to enter into any
contract, option or other arrangement or understanding with respect to the
sale, transfer, assignment, pledge, encumbrance, hypothecation or similar disposition
of, any shares of Equity Securities beneficially owned by a Person or any
interest in any shares of Equity Securities beneficially owned by a Person.

 

8

 

“Transferee” means any Person to whom
any Stockholder or any Transferee thereof Transfers Equity Securities of the
Company in accordance with the terms hereof.

 

“Transfer Notice” has the meaning
assigned to such term in Section 3.4(a).

 

“Transferred Securities” has the
meaning assigned to such term in Section 3.4(a).

 

“Transferring Stockholder” has the
meaning assigned to such term in Section 3.4(a).

 

“VCOC Funds” has the meaning assigned
to such term in Section 2.1(a).

 

“Voting Securities” means, at any
time, shares of any class of Equity Securities of the Company, which are then
entitled to vote generally in the election of Directors.

 

SECTION 1.2.  
Other Definitional Provisions.  
(a)  The words “hereof,” “herein” and “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a
whole and not to any particular provision of this Agreement, and Article and
Section references are to this Agreement unless otherwise specified.

 

(b)  The meanings given to terms
defined herein shall be equally applicable to both the singular and plural
forms of such terms.

 

ARTICLE II

 

CORPORATE GOVERNANCE

 

SECTION 2.1.   Board
Representation.  
(a)  Effective as of the Stock Purchase Closing and, subject
to Section 2.1(g) and Section 2.6, for so long as this Section 2.1 remains in
effect, the Board shall be comprised of nine (9) Directors of whom:

 

(i)            three (3) shall be
designees of Constellation (such persons, the “Constellation Designees”);

 

(ii)           one (1) shall be a
designee (such person, the “KKR VCOC Designee”, and together with the
Constellation Designees, the “KKR Group Designees”) of the KKR
Millennium Fund L.P. (the “KKR Fund”);

 

(iii)          one (1) shall be a
designee of Carlyle (such person, the “Carlyle Designee”);

 

(iv)          one (1) shall be a
designee (such person, the “Carlyle VCOC Designee”, and together with
the Carlyle Designee, the “Carlyle Group Designees”) of Carlyle Partners
III-Telecommunications, L.P. (the “Carlyle Fund”);

 

(v)           one (1) shall be a
designee of Providence (such person, the “Providence Designee”);

 

9

 

(vi)          one (1) shall be a
designee (such person, the “Providence VCOC Designee”, and together with
the Providence Designee, the “Providence Group Designees”) of Providence
Equity Partners IV, L.P. (the “Providence Fund”, and together with the
Carlyle Fund and the KKR Fund, the “VCOC Funds”) (as used herein, the
Constellation Designees, the KKR VCOC Designee, the Carlyle Designee, the
Carlyle VCOC Designee, the Providence Designee and the Providence VCOC Designee
shall collectively be referred to as the “Stockholder Designees”); and

 

(vii)         one (1) designee
shall be the Chief Executive Officer of the Company in office from time to time
(the “CEO Designee”), who shall initially be Joseph R. Wright, Jr.

 

(b)  A designee of the Stockholder
(together with its Affiliates) holding the greatest number of shares of Common
Stock shall be designated as the Chairman of the Board, and the other
Stockholders hereby agree to take any and all actions necessary to cause the
Chairman of the Board designated prior to such time to resign and terminate his
or her position as Chairman of the Board.  
The Stockholders agree that as of the date hereof George M.C. Fisher
shall be designated as Chairman of the Board.

 

(c)  The Company shall take such
action as may be required under applicable law to cause the Board to consist of
the number of Directors specified in clause (a).

 

(d)  The Company agrees to include
in the slate of nominees recommended by the Board the Stockholder Designees and
the CEO Designee and to use its best efforts to cause the election of each such
designee to the Board, including nominating such individuals to be elected as
Directors as provided herein.

 

(e)  In the event that a vacancy is
created at any time by the death, disability, retirement, resignation or
removal (with or without cause) of any Director designated pursuant to clause
(i), (ii), (iii), (iv), (v) or (vi) of Section 2.1(a), the remaining Directors
and the Company shall cause the vacancy created thereby to be filled by a new
designee of the Stockholder or VCOC Fund, as the case may be, who designated
such Director as soon as possible, who is designated in the manner specified in
this Section 2.1, and the Company hereby agrees to take, at any time and from
time to time, all actions necessary to accomplish the same.

 

(f)  Each of the Stockholders
agrees to vote, or act by written consent with respect to, any Voting
Securities beneficially owned by it, at each annual or special meeting of
stockholders of the Company at which Directors are to be elected or to take all
actions by written consent in lieu of any such meeting as are necessary, to
cause the Stockholder Designees and the CEO Designee to be elected to the Board
as provided in this Section 2.1.  Each
of the Stockholders agrees to use its commercially reasonable efforts to cause
the election of each such designee to the Board, including nominating such
individuals to be elected as members of the Board.  In the event that a vacancy is created at any time by the death,
disability, retirement, resignation or removal (with or without cause) of any
Director designated pursuant to clause (i), (ii), (iii), (iv), (v) or (vi) of
Section 2.1(a) and the remaining Directors pursuant to Section 2.1(e) have not
caused the vacancy created thereby to be filled by a new designee of the
applicable Stockholder or VCOC Fund, then in such case each Stockholder or VCOC
Fund hereby agrees to

 

10

 

take, at any time and from time to time, all actions necessary to fill
such vacancy as provided in Section 2.1(e). 
Upon the written request of any Stockholder or any of the VCOC Funds,
each other Stockholder shall vote, or act by written consent with respect to,
all Voting Securities beneficially owned by him or it and otherwise take or
cause to be taken all actions necessary to remove any Director designated by
such Stockholder or VCOC Funds and to elect any replacement Director designated
by such Stockholder or VCOC Fund. 
Unless any Stockholder or any of the VCOC Funds shall otherwise request
in writing, no other Stockholder shall take any action to cause the removal of
any Directors designated by such Stockholder or VCOC Fund.

 

(g)  In the event a Stockholder or
VCOC Fund shall cease to have the right to designate a Director in accordance
with Section 2.6, such Stockholder or VCOC Fund shall cause the designee of
such Stockholder or VCOC Fund, as the case may be, to resign and the Directors
remaining in office shall decrease the size of the Board to eliminate such
vacancy and no consent under Section 2.3(a) shall be required in connection
with such decrease.

 

(h)  The Company shall reimburse
each Stockholder Designee for their reasonable out-of-pocket expenses incurred
by them for the purpose of attending meetings of the Board or committees
thereof.

 

(i)  In the event that any
Stockholder or VCOC Fund shall have a designee or Affiliate serving on the
board of directors of any Subsidiary, each of the other Stockholders or VCOC
Funds, as the case may be, shall have the right to equal representation on such
board of directors in proportion to such other Stockholder’s or VCOC Fund’s
representation on the Board so long as such other Stockholders or VCOC Funds,
as the case may be, continue to have the right described in Section 2.1(a) to
appoint designees to the Board.

 

(j)  The rights of the Stockholders
and VCOC Funds pursuant to this Section 2.1 are personal to the Stockholders
and the VCOC Funds and shall not be exercised by any Transferee other than a
Permitted Transferee described in clause (ii) of the definition thereof.

 

SECTION 2.2.  
Committees; Subsidiaries. 
(a)  So long as a Stockholder or
its affiliated VCOC Fund has the right to designate at least one (1) Director
pursuant to Section 2.1, the Company shall cause each executive committee,
compensation committee, audit committee or other significant committee of the
Board (including, without limitation, any committee performing the functions
usually reserved for the committees described above) to include at least one
(1) of each such Stockholder’s or affiliated VCOC Fund’s designees; provided
that the composition of each such committee shall reflect the relative number
of Stockholder Designees for each Stockholder and its affiliated VCOC Fund.

 

(b)  The Company agrees to take all such action
as is necessary to cause (i) the board of directors of PanAmSat (and any
committees thereof) to be comprised of the same directors as the Board and the
similar committees of the Board of the Company and (ii) the chairman of the
board of directors of PanAmSat to be the same as the Chairman of the Board.

 

SECTION 2.3.   Consent Rights.  (a)  In addition to any vote or
consent of the Board or the stockholders of the Company required by law or the
Charter, and notwithstanding anything in this Agreement to the contrary but
subject to Section 2.6, the Company shall not take

 

11

 

(or, to the extent applicable,
permit any Subsidiary to take) any of the following actions, or enter into any
arrangement or contract to do any of the following actions, without (A) in the
case of clauses (i)-(viii) below, the consent in writing at least one KKR Group
Designee and either one Carlyle Group Designee or one Providence Group Designee,
or (B) in the case of clauses (ix)-(xv) below, the consent in writing of at
least one KKR Group Designee, one Carlyle Group Designee and one Providence
Group Designee (the applicable consent being the consent of the “Required
Directors”), which shall be necessary for authorizing, effecting or
validating such transactions:

 

(i)            the selection,
termination or removal of the Chief Executive Officer of the Company;

 

(ii)           the incurrence of
indebtedness for borrowed money (including through capital leases, the issuance
of debt securities or the guarantee of indebtedness of another Person) other
than (1) the incurrence of trade payables arising in the ordinary course of
operating the business or (2) the issuance of debt securities referred to in
clause (2) of Section 2.3(a)(iii);

 

(iii)          any authorization,
creation (by way of reclassification, merger, consolidation or otherwise) or
issuance of any securities of the Company, other than (1) the issuance of
Reserved Employee Shares that have been reserved as of the date hereof or that
are approved after the date hereof in accordance with Section 2.3(a)(vii), or
(2) (A) the issuance of any securities as consideration in, or in connection
with, a transaction approved pursuant to Sections 2.3(a) (xii) or (xiii) or (B)
any debt securities or up to $25 million of equity securities, in each case
issued as consideration in an Exempt Transaction;

 

(iv)          any redemption,
acquisition or other purchase of any shares of Common Stock (a “Repurchase”)
pro rata from all Stockholders (a “Pro Rata Repurchase”);

 

(v)           any payment or
declaration of any dividend or other distribution on any shares of Common
Stock;

 

(vi)          the creation of any
non-wholly owned subsidiaries, or the Transfer or any sale or other disposition
of a Subsidiary’s securities to any Person other than the Company or a wholly
owned Subsidiary of the Company (other than any pledge of such Subsidiary’s
stock pursuant to a financing approved by the Board);

 

(vii)         the creation or
amendment of any stock option, employee stock purchase or similar equity-based
compensation plan for management or employees, or any increase in the number of
Reserved Employee Shares;

 

(viii)        any amendment,
modification or waiver of any provision contained in the Transaction Agreement,
the Tax Separation Agreement, or the Transition Services Agreement;

 

(ix)           any transaction by
the Company or any Subsidiary with or involving any Affiliate of the Company or
any Affiliate of any stockholder of the Company that

 

12

 

beneficially
owns in excess of ten percent (10%) of the voting power of the Company other
than any transaction between the Company or a wholly-owned Subsidiary of the
Company, on the one hand, and another wholly-owned Subsidiary, on the other
hand;

 

(x)            any amendment,
repeal or alteration of the Charter or the Bylaws, whether by or in connection
with a merger or consolidation or otherwise;

 

(xi)           any increase or
decrease in the size of the Board, committees of the Board, and boards and
committees of Subsidiaries of the Company;

 

(xii)          any (A) acquisition
by the Company or any Subsidiary of the stock, equity interests or assets of
any Person, or the acquiring by the Company or any Subsidiary by any other
manner of any business, properties, assets, or Persons, in one transaction or a
series of related transactions, or (B) disposition of assets of the Company or
any Subsidiary or the capital stock or other equity interests of any
Subsidiary, other than, in either case, an Exempt Transaction;

 

(xiii)         any (A) merger or
consolidation with or into any other Person, or any acquisition of another
Person, whether in a single transaction or a series of related transactions,
other than any Exempt Transaction, (B) proposed transaction or series of
related transactions involving a Change of Control of the Company or (C)
proposed Transfer by a Stockholder except to a Permitted Transferee or a
Transfer in accordance with Section 3.2 hereof;

 

(xiv)        any plan of
liquidation, dissolution or winding-up of the Company;

 

(xv)         any Repurchase other
than (A) a Pro Rata Repurchase or (B) a Repurchase from an employee in
connection with such employee’s termination of employment with the Company or
any Subsidiary.

 

(b)  In connection with any vote or
action by written consent of the stockholders of the Company relating to any
matter requiring consent as specified in Section 2.3(a), each Stockholder
agrees, with respect to any Voting Securities beneficially owned by such
Stockholder with respect to which he or it has the power to vote, (i) to vote
against (and not act by written consent to approve) such matter if such matter
has not been consented to by the Required Directors in accordance with Section
2.3(a) and (ii) to take or cause to be taken, upon the written request of a
Stockholder, all other reasonable actions, at the expense of the Company,
required, to the extent permitted by law, to prevent the taking of any action
by the Company with respect to a matter unless such matter has been consented
to by the Required Directors in accordance with Section 2.3(a).

 

SECTION 2.4.  
Available Financial Information. 
(a)  The Company and, for so long as it continues to prepare
separate financial statements, PanAmSat, will deliver, or will cause to be
delivered, the following to each Stockholder until such time as such
Stockholder and its Affiliates shall cease to own any shares of Common Stock on
an as-converted basis:

 

(i)            as soon as
available after the end of each month and in any event within thirty (30) days
thereafter, a consolidated balance sheet of the Company and its

 

13

 

Subsidiaries
and PanAmSat and its Subsidiaries, as applicable, in each case, as of the end
of such month and consolidated statements of operations, income, cash flows,
retained earnings and stockholders’ equity of the Company and its Subsidiaries
and PanAmSat and its Subsidiaries, as applicable, in each case, for each month
and for the current fiscal year of the Company or PanAmSat, as applicable, to
date, prepared in accordance with GAAP (subject to normal year-end audit
adjustments and the absence of notes thereto) and certified by the principal
financial or accounting officer of the Company and PanAmSat, respectively,
together with a comparison of such statements to the corresponding periods of
the prior fiscal year and to the Company’s or PanAmSat’s business plan then in
effect and approved by the Board; or the board of directors of PanAmSat, as
applicable.

 

(ii)           an annual budget, a
business plan and financial forecasts for the Company and PanAmSat, as
applicable, for the next fiscal year of the Company and PanAmSat, respectively,
no later than thirty (30) days before the beginning of the Company’s or
PanAmSat’s next fiscal year, in such manner and form as approved by the Board
or the board of directors of PanAmSat, as applicable, which shall include at
least a projection of income and a projected cash flow statement for each
fiscal quarter in such fiscal year and a projected balance sheet as of the end
of each fiscal quarter in such fiscal year, in each case prepared in reasonable
detail, with appropriate presentation and discussion of the principal
assumptions upon which such budgets and projections are based, which shall be
accompanied by the statement of the chief executive officer or chief financial
officer or equivalent officer of the Company or PanAmSat, as applicable, to the
effect that such budget and projections are based on reasonable and good faith
estimates and assumptions made by the management of the Company or PanAmSat, as
applicable, for the respective periods covered thereby; it being recognized by
such holders that such budgets and projections as to future events are not to
be viewed as facts and that actual results during the period or periods covered
by them may differ from the projected results. 
Any material changes in such business plan shall be delivered to the
Stockholders as promptly as practicable after such changes have been approved
by the Board or the board of PanAmSat, as the case may be;

 

(iii)          as soon as
available after the end of each fiscal year of the Company and PanAmSat, as
applicable, and in any event within ninety (90)  days thereafter, (A) the annual financial statements required to
be filed by the Company and PanAmSat pursuant to the Exchange Act or (B) a
consolidated balance sheet of the Company and its Subsidiaries and PanAmSat and
its Subsidiaries, as applicable, in each case as of the end of such fiscal
year, and consolidated statements of income, retained earnings and cash flows
of the Company and its Subsidiaries and PanAmSat and its Subsidiaries, as
applicable, for such year, in each case prepared in accordance with GAAP and
setting forth in each case in comparative form the figures for the previous
fiscal year, all in reasonable detail and accompanied by the opinion of
independent public accountants of recognized national standing selected by the
Company and PanAmSat, as applicable, and a Company- or PanAmSat-, as
applicable, prepared comparison to the Company’s or PanAmSat’s business plan
for such year as approved by the Board or the board of directors of PanAmSat,
as applicable; and

 

14

 

(iv)          as soon as available
after the end of the first, second and third quarterly accounting periods in
each fiscal year of the Company and PanAmSat, as applicable, and in any event
within forty-five (45) days thereafter, (A) the quarterly financial statements
required to be filed by the Company and PanAmSat pursuant to the Exchange Act
or (B) a consolidated balance sheet of the Company and its Subsidiaries and
PanAmSat and its Subsidiaries, as applicable, in each case as of the end of
each such quarterly period, and consolidated statements of income, retained
earnings and cash flows of the Company and its Subsidiaries and PanAmSat and
its Subsidiaries, as applicable, in each case for such period and for the
current fiscal year to date, in each case prepared in accordance with GAAP
(subject to normal year-end audit adjustments and the absence of notes thereto)
and setting forth in comparative form the figures for the corresponding periods
of the previous fiscal year and to the Company’s and PanAmSat’s, as applicable,
business plan then in effect as approved by the Board or the board of directors
of PanAmSat, as applicable, all in reasonable detail and certified by the
principal financial or accounting officer of the Company or PanAmSat, as
applicable.

 

(b)  Other Information.  The Company covenants and agrees to deliver
to each Stockholder until such time as such Stockholder shall cease to own any
shares of Common Stock, with reasonable promptness, such other information and
data (including such information and reports made available to any lender of
the Company or any of its Subsidiaries under any credit agreement or otherwise)
with respect to the Company and each of its Subsidiaries as from time to time
may be reasonably requested by any such holder.

 

SECTION 2.5.   Access.  The Company shall, and shall cause its
Subsidiaries, officers, directors, employees, auditors and other agents to,
until such time as such Stockholder shall cease to own any shares of Common
Stock, (a) afford the officers, employees, auditors and other agents of such
Stockholder or affiliated VCOC Fund (as the case may be), during normal business
hours and upon reasonable notice reasonable access at all reasonable times to
its officers, employees, auditors, legal counsel, properties, offices, plants
and other facilities and to all books and records, and (b) afford such
Stockholder or affiliated VCOC Fund the opportunity to discuss the Company’s
affairs, finances and accounts with the Company’s officers from time to time as
each such Stockholder or VCOC Fund may reasonably request.

 

SECTION 2.6.  
Termination of Rights. 
(a)  Notwithstanding Section 2.3, at such time as any
Stockholder, together with its Affiliates, shall cease to own a number of
shares of Common Stock equal to at least ten percent (10%) of the outstanding
shares of Common Stock, the consent of the Directors designated by such
Stockholder or affiliated VCOC Fund shall not be required for authorizing,
effecting or validating the transactions specified in Section 2.3 (it being
understood that the loss of consent rights by any Directors designated by any
Stockholder or affiliated VCOC Fund shall in no way affect the consent rights
of any Directors designated by any other Stockholder or affiliated VCOC Fund
set forth in Section 2.3);

 

(b)  Notwithstanding Section 2.1,
at such time as any Stockholder, together with its Affiliates, shall cease to
own a number of shares of Common Stock equal to at least fifteen percent (15%)
of such Stockholder’s Original Shares, such Stockholder and its Affiliates
(including its affiliated VCOC Fund) shall cease to have the right to designate
any Directors pursuant to Section 2.1 and any rights or obligations pursuant to
Sections 2.2 and 2.7 (other than

 

15

 

the obligation set forth in the last sentence of Section 2.7 to keep
confidential any information regarding any Company Opportunity, which shall
continue for period of two  years
thereafter);

 

(c)  Notwithstanding Section 2.1,
at such time as Carlyle (together with its Affiliates) or Providence (together
with its Affiliates), shall cease to own a number of shares of Common Stock
equal to at least fifty percent (50%) of its respective Original Shares,
Carlyle or Providence (together with their affiliated VCOC Funds), as
applicable, shall cease to have the right to designate more than one (1)
Director pursuant to Section 2.1; and

 

(d)  Notwithstanding Section 2.1,
at such time as Constellation (together with its Affiliates) shall cease to own
a number of shares of Common Stock equal to at least (i) seventy five percent
(75%) of its Original Shares, Constellation (together with its affiliated VCOC
Fund) shall cease to have the right to designate more than three (3) Directors
pursuant to Section 2.1; (ii) fifty percent (50%) of its Original Shares,
Constellation (together with its affiliated VCOC Fund) shall cease to have the
right to designate more than two (2) Directors pursuant to Section 2.1; and
(iii) twenty-five percent (25%) of its Original Shares, Constellation (together
with its affiliated VCOC Fund) shall cease to have the right to designate more
than one (1) Director pursuant to Section 2.1.

 

SECTION 2.7.  
Corporate Opportunities.  Each
Stockholder and VCOC Fund shall cause its Stockholder Designees to recuse
themselves from all deliberations of the Board, and the Company shall have no
obligation to provide to such Stockholder Designees any information, regarding
any acquisition, disposition, investment or similar transaction that the
Company elects to pursue (a “Company Opportunity”) if such Stockholder
or its Affiliates is competing with or is otherwise adverse to the Company with
respect to such Company Opportunity.  If
(1) any Stockholder or its Affiliates consummates the transaction that at
anytime constituted a Company Opportunity or (2) any Affiliate (other than a
Controlled Affiliate who is prohibited from taking the following actions
pursuant to Section 2.8) of a Stockholder acquires, makes an investment in or
otherwise agrees to manage or operate any Person listed on Exhibit B hereto (in
either case, a “Competing Enterprise”), such Stockholder and VCOC Fund
shall cause its Stockholder Designees to recuse themselves from all future
deliberations of the Board relating to, and the Company shall have no
obligation to provide to such Stockholder Designees any information regarding,
that portion of the Company’s business as competes or would reasonably be
expected to compete with the Competing Enterprise (a “Competing Action”).  The consent of the Directors designated by
such Stockholder or affiliated VCOC Fund shall not be required for authorizing,
effecting or validating any transactions specified in Section 2.3 in connection
with such Company Opportunity or Competing Actions.  Solely for purposes of illustration, if an Affiliate of a
Stockholder who is not bound by Section 2.8 were to acquire a Person listed on
Exhibit B who operated in a certain geographic location, such Stockholder and
VCOC Fund shall cause its Stockholder Designees to recuse themselves from all
deliberations of the Board relating to the Company’s investment or operations
in such geographic location and if the Company were considering an acquisition
in such location, no consent of the Directors designated by such Stockholder or
affiliated VCOC Fund would be required in connection with such acquisition.  In addition, each Stockholder and VCOC Fund
shall, and shall cause its Stockholder Designees to, keep confidential any
information regarding any Company Opportunity, including the existence of such
potential acquisition,  disposition,
investment or similar transaction, that such Stockholder, VCOC Fund or
Stockholder Designee learns about as a result of its participation in

 

16

 

the Board; provided, however,
that the obligation to keep such information confidential shall not apply to
information which (i) becomes generally available to the public, (ii) is
already in the possession of such Stockholder, VCOC Fund or Stockholder
Designee prior to learning such information as a result of participation on the
Board or being a Stockholder, (iii) becomes properly available to such
Stockholder, VCOC Fund or Stockholder Designee on a non-confidential basis from
a source other than the Company or (iv) is required to be disclosed by
applicable law, regulation, governmental order or which is otherwise requested
by subpoena, interrogatory or other discovery request.

 

SECTION 2.8.  
Non-Competition.  For so long (i)
as a Stockholder or its affiliated VCOC Fund has the right to designate a
Director pursuant to Section 2.1(a) or (ii) the consent of the Directors
designated by such Stockholder or its affiliated VCOC Fund is required for
authorizing, effecting or validating the transactions specified in Section 2.3,
such Stockholder and its Controlled Affiliates (including its affiliated VCOC
Fund) will be prohibited from owning, managing, operating, controlling or
participating in the ownership, management, operation or control of any person
listed on Exhibit B hereto.

 

ARTICLE III

 

TRANSFERS

 

SECTION 3.1.  
Rights and Obligations of Transferees. 
(a)  Except with the prior written consent of the Required
Directors pursuant to clause (xiii) of Section 2.3(a) (and if no Stockholder is
entitled to designate any Directors pursuant to Section 2.1 then the prior
written consent of a majority of the Board), no Transferee of any Stockholder,
except a Permitted Transferee described in clause (ii) of the definition
thereof, shall be entitled to any rights under this Agreement other than the
right of co-sale set forth in Section 3.4. 
A Permitted Transferee described in clause (ii) of the definition
thereof shall be permitted to exercise all rights of the transferring
Stockholder under this Agreement with respect to the shares of Common Stock
Transferred.

 

(b)  Subject to the last sentence
of this Section 3.1(b), prior to the consummation of a Transfer by any
Stockholder or any Transferee, as a condition thereto, the applicable
Transferee or subsequent Transferee shall agree in writing in the form attached
as Exhibit A hereto to assume all of the obligations in this Agreement
applicable to the Transferring Stockholder with respect to the Equity
Securities so transferred. 
Notwithstanding the foregoing, a Transferee of Equity Securities shall
not be bound by any of the terms and conditions of this Agreement if the
applicable Transfer is pursuant to an effective registration statement under
the Securities Act or pursuant to Rule 144 of the Securities Act.

 

SECTION 3.2.  
Transfer Restrictions. 
(a)  Until the fifth anniversary of the Stock Purchase Closing
Date, each Stockholder hereby agrees that such Stockholder shall not Transfer
any of its Equity Securities at any time other than (i) Transfers of its Equity
Securities to its Permitted Transferees, (ii) following an IPO, Transfers
pursuant to the Registration Rights Agreement, (iii) pursuant to Sections 3.4,
and (iv) with the prior written consent of the Required

 

17

 

Directors pursuant to clause
(xiii) of Section 2.3(a) (and if no Stockholder is entitled to designate any
Directors pursuant to Section 2.1 then the prior written consent of a majority
of the Board).

 

(b)  Following the fifth
anniversary of the Stock Purchase Closing Date, so long as the Company has not
completed an IPO, and, subject to compliance with Section 3.3 and 3.4, each
Stockholder may freely Transfer its Equity Securities without restriction.

 

(c)  Following the fifth
anniversary of the Stock Purchase Closing Date, if the Company has completed an
IPO, each Stockholder may freely Transfer its Equity Securities without
restriction subject to compliance with applicable securities laws.

 

(d)  Each Stockholder shall as
promptly as practicable provide the Stockholders with written notice of any
Transfer made in accordance with Section 3.2(a) or (b).

 

SECTION 3.3.  
Right of First Offer.  Following
the fifth anniversary of the Stock Purchase Closing Date, so long as the
Company has not completed an IPO, no Stockholder shall Transfer any of its
Equity Securities other than to a Permitted Transferee or a sale by a Co-Sale
Participant pursuant to Section 3.4 except as set forth below:

 

(a)  Prior to any Transfer of
Equity Securities by a Stockholder (the “Offering Holder”), the Offering
Holder shall deliver to the Company and each other Stockholder that is not an
Affiliate of the Offering Holder (collectively, excluding the Company, the “ROFO
Recipients”) written notice (the “Offer Notice”), stating such Offer
Holder’s intention to effect such a Transfer, the number of Equity Securities
subject to such Transfer (the “Offered Securities”), the price the
Offering Holder proposes to be paid for the Offered Securities (the “First
Offer Price”), and the other material terms and conditions of the proposed
Transfer.  The Offer Notice may require
that the consummation of any sale of the Offered Securities to the Company or
the ROFO Recipients occur on a date that is no less than 30 days, and no later
than 60 days after the date of the Offer Notice (or, if FCC approval or consent
is required in connection with the proposed Transfer, no later than the earlier
of 30 days after such approval or consent has been obtained and six months
after the date of the Offer Notice).

 

(b)  Upon receipt of the Offer
Notice, the Company will have an irrevocable non-transferable option to
purchase all or a portion of the Offered Securities at the First Offer Price
and otherwise on the terms and conditions described in the Offer Notice (the “First
Offer”).  The Company shall, within
15 days from receipt of the Offer Notice, indicate whether or not it has accepted
the First Offer by sending irrevocable written notice of any such acceptance to
the Offering Holder and the ROFO Recipients indicating the number of Offered
Shares to be purchased (the “Acceptance Notice”), and the Company shall
then be obligated to purchase such number of Offered Securities on the terms
and conditions set forth in the Offer Notice. 
In the event the Company elects not to purchase any or all of the
Offered Securities, the ROFO Recipients shall have the option to purchase at
the First Offer Price all, but not less than all, of the Offered Securities
with respect to which the Company has not exercised its option, and each of the
ROFO Recipients shall, within 15 days from receipt of the Company’s Acceptance
Notice, indicate to the Offering Holder and the Company if it has accepted the
First Offer and, if so, the number of Offered Securities to be purchased by
sending irrevocable written notice of such acceptance to the Offering Holder
and the Company, and such ROFO Recipient shall then be

 

18

 

obligated to purchase such number of Offered Securities on the terms
and conditions set forth in the Offer Notice.

 

(c)  Notwithstanding any other
provision of this Section 3.3, the ROFO Recipients shall not be permitted to
purchase less than all of the Offered Securities without the consent of the
Offering Holder.  The number of shares
that each ROFO Recipient shall be entitled to purchase upon the exercise of the
right of first offer shall be equal to such ROFO Recipient’s Pro Rata Portion
of the Offered Securities other than those as to which the Company has
exercised its option.  In the event any
ROFO Recipient elects to purchase less than all of its Pro Rata Portion (such
remaining securities, the “Section 3.3 Non-Electing Shares), the Company
shall notify the other ROFO Recipients as to the aggregate number of Section
3.3 Non-Electing Shares, and each such other ROFO Recipient shall be entitled
to purchase its Pro Rata Portion of the Section 3.3 Non-Electing Shares by
providing written notice that such ROFO Recipient has elected to purchase all
(but not less than all) of its Pro Rata Portion of the Section 3.3 Non-Electing
Shares within 5 days of receipt of such notice, and such ROFO Recipient shall then
be obligated to purchase such ROFO Recipient’s Pro Rata Portion of the Section
3.3 Non-Electing Shares; provided, however, that for the purposes
of this Section 3.3(c), in computing a ROFO Recipient’s Pro Rata Portion of the
Section 3.3 Non-Electing Shares, the ROFO Recipient that failed to elect to
purchase such Section 3.3 Non-Electing Shares shall not be considered to
hold  any shares of Common Stock.

 

(d)  If neither the Company nor the
ROFO Recipients (in the aggregate) elect to purchase all of the Offered
Securities pursuant to this Section 3.3, then the applicable Offering Holder
shall  be free  for a period of six months from the date
acceptance notices from the ROFO Recipients were due to be received by the
applicable Offering Holder to enter into definitive agreements to Transfer the
Offered Securities as to which such options are not exercised to a Transferee
for consideration having a value not less than 90% of the First Offer Price and
to transfer the Offered Securities pursuant to such definitive agreements; provided
that any such definitive agreement provides for the consummation of such
Transfer to take place within six months (or in the absence of FCC approval at
the end of such six months, nine months) from the date of such definitive agreement
and is otherwise on terms not more favorable to the transferee in any material
respect than were contained in the Offer Notice.

 

(e)  If neither the Company nor the
ROFO Recipients (in the aggregate) exercise their respective options to
purchase all of the Offered Securities at the First Offer Price and the
applicable Offering Holder has not entered into a definitive agreement
described in Section 3.3(d) within six months from the date acceptance notices
from the ROFO Recipients were due to be received by the applicable Offering
Holder, or the Offering Holder has entered into such an agreement but has not
consummated the sale of such securities within six months (or in the absence of
FCC approval at the end of such six months, nine months) from the date of such
definitive agreement, then the provisions of this Section 3.3 shall again
apply, and such Offering Holder shall not Transfer or offer to Transfer such
Equity Securities without again complying with this Section 3.3.

 

(f)  Upon exercise by the Company
and/or the ROFO Recipients, as the case may be, of their respective rights of
first offer under this Section 3.3, the Company and/or the ROFO Recipients, as
the case may be, and the applicable Offering Holder shall be legally obligated
to

 

19

 

consummate the purchase contemplated thereby and shall use their
commercially reasonable efforts to secure any governmental authorization
required, to comply as soon as reasonably practicable with all applicable laws
and to take all such other actions and to execute such additional documents as
are reasonably necessary or appropriate in connection therewith and to
consummate the purchase of the Offered Securities as promptly as practicable.

 

SECTION 3.4.   Right of
Co-Sale on Transfers by Stockholders. 
(a)  In the event of a proposed Transfer of Equity Securities
by a Stockholder or any of its Affiliates (a “Transferring Stockholder”),
each Stockholder (other than the Transferring Stockholder) shall have the right
to participate in the Transfer in the manner set forth in this Section
3.4.  Prior to any such Transfer, the
Transferring Stockholder shall deliver to the Company prompt written notice
(the “Transfer Notice”), which the Company will forward to the
Stockholders and each Affiliate of such Stockholders that has been Transferred
Equity Securities (other than the Transferring Stockholder, the “Co-Sale
Participants”), which notice shall state (i) the name of the proposed
Transferee, (ii) the number of Equity Securities proposed to be Transferred
(the “Transferred Securities”), (iii) the proposed purchase price
therefor, including a description of any non-cash consideration sufficiently
detailed to permit the determination of the Fair Market Value thereof, and (iv)
the other material terms and conditions of the proposed Transfer, including the
proposed Transfer date (which date may not be less than thirty-five (35) days
after delivery of the Transfer Notice). 
Such notice shall be accompanied by a written offer from the proposed
Transferee to purchase the Transferred Securities.  Each Co-Sale Participant may Transfer to the proposed Transferee
identified in the Transfer Notice their Pro Rata Portion of the Transferred
Securities by giving written notice to the Company (who shall forward such
notice to the other Co-Sale Participants within five (5) days) and to the
Transferring Stockholder within the thirty (30) day period after the delivery
of the Transfer Notice, which notice shall state that such Co-Sale Participant elects
to exercise its rights of co-sale under this Section 3.4 and shall state the
maximum number of shares sought to be Transferred.  In the event any such Co-Sale Participant elects to exercise its
co-sale rights with respect to less than all of its Pro Rata Portion (such
remaining securities, the “Section 3.4 Non-Electing Shares”), each such
other Co-Sale Participant shall be entitled to sell its Pro Rata Portion of the
Section 3.4 Non-Electing Shares.  Each
Co-Sale Participant shall be deemed to have waived its right of co-sale
hereunder if it either fails to give notice within the prescribed time period
or if such Co-Sale Participant purchases Equity Securities in exercising its
right of first offer pursuant to Section 3.3. 
The proposed Transferee of Transferred Securities will not be obligated
to purchase a number of Equity Securities exceeding that set forth in the
Transfer Notice and in the event such Transferee elects to purchase less than
all of the additional Equity Securities sought to be Transferred by the Co-Sale
Participants, the number of Equity Securities to be Transferred by the
Transferring Stockholder and each such Co-Sale Participant shall be reduced on
a pro rata basis.  If, following the
exercise of the co-sale rights provided for in this Section 3.4, the proposed
Transferee purchases a number a Equity Securities greater than the number of
Equity Securities proposed to be purchased in the Transfer Notice, each Co-Sale
Participant shall have the right to sell to the proposed Transferee such Sale
Participant’s Pro Rata Portion of such additional Equity Securities.

 

(b)  Each Co-Sale Participant, in
exercising its right of co-sale hereunder, may participate in the Transfer by
delivering to the Transferring Stockholder at the closing of the Transfer of
the Transferring Stockholder’s Transferred Securities to the Transferee
certificates

 

20

 

representing the Transferred Securities to be Transferred by such
holder, duly endorsed for transfer or accompanied by stock powers duly
executed, in either case executed in blank or in favor of the applicable
purchaser against payment of the aggregate purchase price therefor by wire
transfer of immediately available funds.

 

(c)  The following Transfers of
Equity Securities by any Stockholder or its Affiliates shall not be subject to
the co-sale rights provided by this Section 3.4:  (A) Transfers to Permitted Transferees of such Stockholder (or
Permitted Transferees of such Permitted Transferees), (B) prior to fifth
anniversary of the Stock Purchase Closing Date and following an IPO, Transfers
pursuant to the Registration Rights Agreement and (c) Transfers following the
fifth anniversary of the Stock Purchase Closing Date, if the Company has
previously consummated an IPO or Transfers following an IPO consummated
thereafter.

 

SECTION 3.5.   Drag
Along Right.  (a)  If one
or more Stockholders desire to Transfer at least 50.01% of the Voting
Securities of the Company and, solely for so long as Section 2.3(c)(xiii) requires
such approval, such Transfer has been approved by the Required Directors
pursuant to Section 2.3(c)(xiii), then if requested by the Stockholder(s)
Transferring such Voting Securities (the “Section 3.5 Transferring
Stockholder(s)”), such other Stockholder (together with its Affiliates) (a
“Selling Stockholder”) shall be required to sell all of the Equity
Securities held by it (it being understood that the termination of the rights
of any Stockholder under Section 2.3 shall not affect the obligations of such
Stockholder under this Section 3.5).

 

(b)  The consideration to be
received by a Selling Stockholder shall be the same form and amount of
consideration per share to be received by the Section 3.5 Transferring
Stockholder(s), and the terms and conditions of such sale shall be the same as
those upon which the Section 3.5 Transferring Stockholder(s) sells its Equity
Securities.  In connection with the
transaction contemplated by Section 3.5(a) (the “Drag Transaction”), the
Selling Stockholder will agree to make or agree to the same customary
representations, covenants, indemnities and agreements as the Section 3.5
Transferring Stockholder(s) so long as they are made severally and not jointly
and the liabilities thereunder are borne on a pro rata basis based on the
consideration to be received by each Stockholder; provided, however,
that any general indemnity given by the Transferring Stockholder(s), applicable
to liabilities not specific to the Section 3.5 Transferring Stockholder(s), to
the purchaser in connection with such sale shall be apportioned among the
Selling Stockholders according to the consideration received by each Selling
Stockholder and shall not exceed such Selling Stockholder’s proceeds from the
sale; provided, further, that any representation made by a
Selling Stockholder shall relate only to such Selling Stockholder and its
Equity Securities.

 

(c)  The fees and expenses, other
than those payable to any Stockholder or any of their respective Affiliates,
incurred in connection with a sale under this Section 3.5 and for the benefit
of all Stockholders (it being understood that costs incurred by or on behalf of
a Stockholder for his, her or its sole benefit will not be considered to be for
the benefit of all Stockholders), to the extent not paid or reimbursed by the
Company or the Transferee or acquiring Person, shall be shared by all the
Stockholders on a pro rata basis, based on the consideration received by each
Stockholder; provided that no Stockholder shall be obligated to make any
out-of-pocket  expenditure prior to the
consummation of the transaction consummated pursuant to this Section 3.5
(excluding modest expenditures for postage, copies, etc.).

 

21

 

(d)  The Section 3.5 Transferring
Stockholder(s) shall provide written notice (the “Drag Along Notice”) to
each other Selling Stockholder of any proposed Drag Transaction as soon as
practicable following its exercise of the rights provided in Section
3.5(a).  The Drag Along Notice shall set
forth the consideration to be paid by the purchaser for the securities and the
material terms of the Drag Transaction.

 

(e)  If any holders of Equity
Securities of any class are given an option as to the form and amount of
consideration to be received, all holders of Equity Securities of such class
will be given the same option.

 

(f)  At least ten (10) Business
Days prior to the consummation of the sale, each Selling Stockholder shall
deliver to the Company to hold in escrow pending transfer of the consideration
therefor, the duly endorsed certificate or certificates representing the Equity
Securities held by such Selling Stockholder to be sold, and a stock power and
limited power-of-attorney authorizing the Company to take all actions necessary
to sell or otherwise dispose of such securities.  In the event that a Selling Stockholder should fail to deliver
the Equity Securities, the Company shall cause the books and records of the
Company to show that such Equity Securities are bound by the provisions of this
Section 3.5 and that such securities may only be Transferred to the purchaser
in such Drag Transaction.

 

(g)  Upon the consummation of the
Drag Transaction, the acquiring Person shall remit directly to the Selling
Stockholder, by wire transfer if available and if requested by the Selling
Stockholder, the consideration for the securities sold pursuant thereto.

 

SECTION 3.6.   Void
Transfers.  Any Transfer or
attempted Transfer of Equity Securities in violation of any provision of this
Agreement shall be void.

 

ARTICLE IV

 

EQUITY PURCHASE RIGHTS

 

SECTION 4.1.   Equity
Purchase Rights.  (a)  The
Company hereby grants to each Stockholder (and such Stockholder’s Affiliates
that are Transferred Equity Securities) the right to purchase its Pro Rata
Portion of all or any part of New Securities that the Company may, from time to
time, propose to sell or issue.  The
number or amount of New Securities which the Stockholders may purchase pursuant
to this Section 4.1(a) shall be referred to as the “Equity Purchase Shares.”
 The equity purchase right provided in
this Section 4.1(a) shall apply at the time of issuance of any right, warrant
or option or convertible or exchangeable security and not to the conversion,
exchange or exercise thereof.

 

(b)  The Company shall give written
notice of a proposed issuance or sale described in Section 4.1(a) to the
Stockholders within five (5) Business Days following any meeting of the Board
at which any such issuance or sale is approved and at least fifteen (15) days
prior to the proposed issuance or sale. 
Such notice (the “Issuance Notice”) shall set forth the material
terms and conditions of such proposed transaction, including the name of any
proposed purchaser(s), the proposed manner of disposition, the number or amount
and description of the

 

22

 

shares proposed to be issued, the proposed issuance date and the
proposed purchase price per share, including a description of any non-cash
consideration sufficiently detailed to permit the determination of the Fair
Market Value thereof.  Such notice shall
also be accompanied by any written offer from the prospective purchaser to
purchase such New Securities.

 

(c)  At any time during the 15-day
period following the receipt of an Issuance Notice, the Stockholders shall have
the right to elect irrevocably to purchase its Pro Rata Portion of the number
of the Equity Purchase Shares at the purchase price set forth in the Issuance
Notice (provided that, in the event any portion of the purchase price
per share to be paid by the proposed purchaser is to be paid in non-cash
consideration, the value of any such non-cash consideration per share shall be
the Fair Market Value thereof) and upon the other terms and conditions
specified in the Issuance Notice by delivering a written notice to the
Company.  Except as provided in the
following sentence, such purchase shall be consummated concurrently with the
consummation of the issuance or sale described in the Issuance Notice.  The closing of any purchase by any Stockholder
may be extended beyond the closing of the transaction described in the Issuance
Notice to the extent necessary to (i) obtain required governmental approvals
and other required approvals and the Company and the Stockholders shall use
their respective commercially reasonable efforts to obtain such approvals and
(ii) permit the Stockholders or their Affiliates to complete their internal
capital call process; provided that the extension pursuant to this clause (ii)
shall not exceed 30 days.

 

(d)  Each Stockholder exercising
its right to purchase its respective portion of the Equity Purchase Shares in
full (an “Exercising Stockholder”) shall have a right of over-allotment
such that if any other Stockholder or Affiliate of any Stockholder fails  to exercise its right hereunder to purchase
its full Pro Rata Portion of New Securities (a “Non-Purchasing Stockholder”),
such Exercising Stockholder may purchase its Pro Rata Portion of such
securities by giving written notice to the Company within ten (10) days from
the date that the Company provides written notice of the amount of New
Securities as to which such Non-Purchasing Stockholders have failed to exercise
their Equity Purchase Rights hereunder.

 

(e)  If any Stockholder or
Exercising Stockholder fails to exercise fully the Equity Purchase Right within
the periods described above and after expiration of the 10-day period for
exercise of the over-allotment provisions pursuant to Section 4.1(d) above, the
Company shall be free to complete the proposed issuance or sale of the New
Securities described in the Issuance Notice with respect to which Exercising
Stockholders failed to exercise the option set forth in this Section 4.1 on
terms no less favorable to the Company than those set forth in the Issuance Notice
(except that the amount of securities to be issued or sold by the Company may
be reduced); provided that (x) such issuance or sale is closed within
ninety (90) days after the expiration of the 10-day period described in Section
4.1(d) and (y) the price at which the New Securities are Transferred must be
equal to or higher than the purchase price described in the Issuance
Notice.  Such periods within which such
issuance or sale must be closed shall be extended to the extent necessary to
obtain required governmental approvals and other required approvals and the
Company shall use its commercially reasonable efforts to obtain such
approvals.  In the event that the
Company has not sold such New Securities within said 90-day period, the Company
shall not thereafter issue or sell any New Securities, without first again
offering such securities to the Stockholders in the manner provided in this
Section 4.1.

 

23

 

ARTICLE V

 

MISCELLANEOUS

 

SECTION 5.1.   Stockholder
Indemnification; Reimbursement of Expenses.

 

The
Company agrees to indemnify and hold harmless each Stockholder, their
respective directors, members, managers and officers and their Affiliates (the
Stockholders, and the respective directors, officers, partners, members,
managers, Affiliates and controlling persons thereof, each, an “Stockholder
Indemnitee”) from and against any and all liability, including, without
limitation, all obligations, costs, fines, claims, actions, injuries, demands,
suits, judgments, proceedings, investigations, arbitrations (including
stockholder claims, actions, injuries, demands, suits, judgments, proceedings,
investigations or arbitrations) and reasonable expenses, including reasonable
accountant’s and reasonable attorney’s fees and expenses (together the
“Losses”), incurred by such Stockholder Indemnitee before or after the date of
this Agreement and arising out of, resulting from, or relating to (i) such
Stockholder Indemnitee’s purchase and/or ownership of any Equity Securities,
(ii) the transactions contemplated by the Transaction Agreement (including the
agreements described therein), and any other purchase agreements pursuant to
which any Stockholder Indemnitee purchased securities of the Company and all
agreements contemplated thereby, or (iii) any litigation to which any
Stockholder Indemnitee is made a party in its capacity as a stockholder or
owner of securities (or a partner, director, officer, member, manager,
Affiliate or controlling person of any Stockholder Indemnitee) of the Company;
provided that the foregoing indemnification rights in this Section 5.1 shall
not be available to the extent that (a) any such Losses are incurred as a
result of such Stockholder Indemnitee’s willful misconduct or gross negligence;
(b) any such Losses are incurred as a result of non-compliance by such
Stockholder Indemnitee with any laws or regulations applicable to any of them;
(c) any such Losses are incurred as a result of non-compliance by such
Stockholder Indemnitee with its obligations under any of the agreements or
instruments referenced above or any other agreements or instruments to which
such Stockholder Indemnitee is or becomes a party or otherwise becomes bound;
or (d) subject to the rights of contribution provided for below, to the extent
indemnification for any Losses would violate any applicable law, regulation or
public policy.  For purposes of this
Section 5.1, none of the circumstances described in the limitations contained
in the proviso in the immediately preceding sentence shall be deemed to apply
absent a final non-appealable judgment of a court of competent jurisdiction to
such effect, in which case to the extent any such limitation is so determined
to apply to any Stockholder Indemnitee as to any previously advanced indemnity
payments made by the Company under this Section 5.1, then such payments shall
be promptly repaid by such Stockholder Indemnitee to the Company.  The rights of any Stockholder Indemnitee to
indemnification hereunder will be in addition to any other rights any such
party may have under any other agreement or instrument referenced above or any
other agreement or instrument to which such Stockholder Indemnitee is or
becomes a party or is or otherwise becomes a beneficiary or under law or
regulation.  In the event of any payment
of indemnification pursuant to this Section 5.1, so long as any Stockholder
Indemnitee is fully indemnified for all Losses, the Company will be subrogated
to the extent of such payment to all of the related rights of recovery of the
Stockholder Indemnitee to which such payment is made against all other
Persons.  Such Stockholder Indemnitee
shall execute all papers reasonably

 

24

 

required
to evidence such rights.  The Company
will be entitled at its election to participate in the defense of any third
party claim upon which indemnification is due pursuant to this Section 5.1 or
to assume the defense thereof, with counsel reasonably satisfactory to such
Stockholder Indemnitee unless, in the reasonable judgment of the Stockholder
Indemnitee, a conflict of interest between the Company and such Stockholder
Indemnitee may exist, in which case such Stockholder Indemnitee shall have the
right to assume its own defense and the Company shall be liable for all
reasonable expenses therefor.  Except as
set forth above, should the Company assume such defense all further defense
costs of the Stockholder Indemnitee in respect of such third party claim shall
be for the sole account of such party and not subject to indemnification
hereunder.  The Company will not without
the prior written consent of the Stockholder Indemnitee effect any settlement
of any threatened or pending third party claim in which such Stockholder
Indemnitee is or could have been a party and be entitled to indemnification
hereunder unless such settlement solely involves the payment of money and
includes an unconditional release of such Stockholder Indemnitee from all
liability and claims that are the subject matter of such claim.  If the indemnification provided for above is
unavailable in respect of any Losses, then the Company, in lieu of indemnifying
an Stockholder Indemnitee, shall contribute to the amount paid or payable by
such Stockholder Indemnitee in such proportion as is appropriate to reflect the
relative fault of the Company and such Stockholder Indemnitee in connection
with the actions which resulted in such Losses, as well as any other equitable
considerations.

 

The Company agrees
to pay or reimburse (i) the Stockholders for (A) all reasonable costs and
expenses (including reasonable attorneys fees, charges, disbursement and
expenses) incurred in connection with any amendment, supplement, modification
or waiver of or to any of the terms or provisions of this Agreement, the Transaction
Agreement or any related agreements and (B) in connection with any stamp,
transfer, documentary or other similar taxes, assessments or charges levied by
any governmental or revenue authority in respect of this Agreement, the
Transaction Agreement or any related agreements; and (ii) each Stockholder for
all costs and expenses of such Stockholder (including reasonable attorneys
fees, charges, disbursement and expenses) incurred in connection with
(1) the consent to any departure by the Company or any of its Subsidiaries
from the terms of any provision of this Agreement, the Transaction Agreement or
any related agreements and (2) the enforcement or exercise by such
Stockholder of any right granted to it or provided for hereunder.

 

SECTION 5.2.   Termination.  Subject to the early termination of any
provision as a result of an amendment to this Agreement agreed to by the
Company and the Stockholders as provided under Section 5.8, (i) the
provisions of Article II shall, with respect to each Stockholder, terminate as
provided in the applicable Section of Article II or, if not so provided, as
provided in Section 2.6, (ii) the provisions of Section 3.3 and Article IV
shall terminate upon the consummation of an IPO, (iii) the provisions of
Sections 2.4, 2.5, 3.2 and 3.4 shall terminate as provided therein and
(iv) Sections 3.1, 3.6 and 5.1 of this Agreement shall not terminate.  Nothing herein shall relieve any party from
any liability for the breach of any of the agreements set forth in this
Agreement.

 

SECTION 5.3.   Amendments
and Waivers.  Except as otherwise
provided herein, no modification, amendment or waiver of any provision of this
Agreement shall be effective without the approval of the Company and each
Stockholder; provided, that any Stockholder may

 

25

 

waive
(in writing) the benefit of any provision of this Agreement with respect to
itself for any purpose.  The failure of
any party to enforce any of the provisions of this Agreement shall in no way be
construed as a waiver of such provisions and shall not affect the right of such
party thereafter to enforce each and every provision of this Agreement in
accordance with its terms.  Each of
Constellation, Carlyle and Providence hereby agrees not to consent to amend
this Agreement in order to modify or eliminate the right of its affiliated VCOC
Fund to appoint a Stockholder Designee without the consent of such affiliated
VCOC Fund.

 

SECTION 5.4.   Successors,
Assigns and Transferees.  This
Agreement shall bind and inure to the benefit of and be enforceable by the
parties hereto and their respective successors and permitted assigns.  Stockholders may assign their respective
rights and obligations hereunder to any Transferees only to the extent
expressly provided herein.

 

SECTION 5.5.   Legend.  (a)  All certificates representing
the Equity Securities held by each Stockholder shall bear a legend
substantially in the following form:

 

“THE SECURITIES REPRESENTED BY THIS
CERTIFICATE ARE SUBJECT TO A STOCKHOLDERS AGREEMENT (A COPY OF WHICH IS ON FILE
WITH THE SECRETARY OF THE COMPANY).  NO
TRANSFER, SALE, ASSIGNMENT, PLEDGE, HYPOTHECATION OR OTHER DISPOSITION OF THE
SECURITIES REPRESENTED BY THIS CERTIFICATE MAY BE MADE EXCEPT IN ACCORDANCE
WITH THE PROVISIONS OF SUCH STOCKHOLDERS AGREEMENT AND (A) PURSUANT TO A
REGISTRATION STATEMENT EFFECTIVE UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
OR (B) PURSUANT TO AN EXEMPTION FROM REGISTRATION THEREUNDER.  THE HOLDER OF THIS CERTIFICATE, BY
ACCEPTANCE OF THIS CERTIFICATE, AGREES TO BE BOUND BY ALL OF THE PROVISIONS OF
SUCH STOCKHOLDERS AGREEMENT.

 

(b)  Upon the sale of any Equity
Securities pursuant to (i) an effective registration statement under the
Securities Act or pursuant to Rule 144 under the Securities Act or (ii) another
exemption from registration under the Securities Act or upon the termination of
this Agreement, the certificates representing such Equity Securities shall be
replaced, at the expense of the Company, with certificates or instruments not
bearing the legends required by this Section 5.5; provided that the
Company may condition such replacement of certificates under clause (ii) upon
the receipt of an opinion of securities counsel reasonably satisfactory to the
Company.

 

SECTION 5.6.   Notices.  All notices and other communications
required or permitted hereunder shall be in writing and shall be deemed
effectively given: (a) upon personal delivery to the party to be notified; (b)
when sent by confirmed facsimile if sent during normal business hours of the recipient,
if not, then on the next Business Day, provided that a copy of such
notice is also sent via nationally recognized overnight courier, specifying
next day delivery, with written verification of receipt; (c) five (5) days
after having been sent by registered or certified mail, return receipt
requested, postage prepaid; or (d) one (1) Business Day after deposit with a
nationally recognized overnight courier, specifying next day delivery, with
written verification of receipt.  All
communications shall be sent to such party’s address as set forth below or at
such other address as the party shall have furnished to each other party in
writing in accordance with this provision:

 

26

 

	
  If to the Company or

  PanAmSat

  	
   

  	
  PanAmSat Holding Corporation/PanAmSat Corporation

  20 Westport Road

  Wilton, Connecticut 06897

  Attention:James W. Cuminale

  Telecopy:203-210-8684

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  (which shall not

  constitute notice)

  	
   

  	
  Simpson Thacher & Bartlett LLP

  425 Lexington Avenue

  New York, New York 10017

  
	
   

  	
   

  	
  Attention:Gary I.
  Horowitz

  Marni J. Lerner

  
	
   

  	
   

  	
  Telecopy:(212) 455-2502

  
	
   

  	
   

  	
   

  
	
  If to Constellation or KKR

  Fund:

  	
   

  	
  Constellation, LLC

  c/o Kohlberg Kravis & Roberts & Co.

  9 West 57th Street

  New York, New York 10019

  Attention:  Alex Navab

  Telecopy:  (212) 750-0003

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  (which shall not

  constitute notice)

  	
   

  	
  Simpson Thacher & Bartlett LLP

  425 Lexington Avenue

  New York, New York 10017

  
	
   

  	
   

  	
  Attention:Gary I.
  Horowitz

  Marni J. Lerner

  
	
   

  	
   

  	
  Telecopy:(212) 455-2502

  
	
   

  	
   

  	
   

  
	
  If to Carlyle or the Carlyle

  Fund:

  	
   

  	
  Carlyle PanAmSat I, L.L.C.

  Carlyle PanAmSat II, L.L.C.

  1001 Pennsylvania Avenue, N.W.

  Suite 220 South

  Washington, D.C. 20004

  Attention:Bruce E. Rosenblum

  Telecopy:(202) 347-9250

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  (which shall not

  constitute notice)

  	
   

  	
  Latham & Watkins LLP

  555 Eleventh Street, NW

  Suite 1000 Washington, D.C. 20004-1304

  Attention: Daniel T. Lennon

  Telecopy: (202) 637-2201

  

 

27

 

	
  If to
  Providence or the

  Providence Fund:

  	
   

  	
  PEP PAS, LLC

  PEOP PAS, LLC

  50 Kennedy Plaza

  18th Floor

  Providence, RI 02903

  Attention: Paul Salem

  Telecopy: (401) 751-1709

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  (which shall not

  constitute notice)

  	
   

  	
  Latham & Watkins LLP

  555 Eleventh Street, NW

  Suite 1000

  Washington, D.C. 20004-1304

  Attention: Daniel T. Lennon

  Telecopy: (202) 637-2201

  

 

SECTION 5.7.   Further
Assurances.  At any time or from
time to time after the date hereof, the parties agree to cooperate with each
other, and at the request of any other party, to execute and deliver any further
instruments or documents and to take all such further action as the other party
may reasonably request in order to evidence or effectuate the consummation of
the transactions contemplated hereby and to otherwise carry out the intent of
the parties hereunder.

 

SECTION 5.8.   Entire
Agreement.  Except as otherwise
expressly set forth herein, this Agreement together with the Registration
Rights Agreement embodies the complete agreement and understanding among the
parties hereto with respect to the subject matter hereof and supersedes and
preempts any prior understandings, agreements or representations by or among
the parties, written or oral, that may have related to the subject matter
hereof in any way.

 

SECTION 5.9.   Restrictions
on Other Agreements; Bylaws. 
(a)  Following the date hereof, no Stockholder or any of its,
her or his Permitted Transferees shall enter into or agree to be bound by any
stockholder agreements or arrangements of any kind with any Person with respect
to any Equity Securities except pursuant to the agreements specifically
contemplated by the Transaction Agreement and the Registration Rights Agreement
or expressly permitted hereunder.

 

(b)  The provisions of this
Agreement shall be controlling if any such provisions or the operation thereof
conflict with the provisions of the Company’s by-laws.  Each of the parties covenants and agrees to
vote their Equity Securities and to take any other action reasonably requested
by the Company or any Stockholder to amend the Company’s by-laws so as to
avoid any conflict with the provisions hereof.

 

SECTION 5.10.    Delays
or Omissions.  It is agreed that no
delay or omission to exercise any right, power or remedy accruing to any party,
upon any breach, default or noncompliance by another party under this
Agreement, shall impair any such right, power or remedy, nor shall it be
construed to be a waiver of any such breach, default or noncompliance, or any
acquiescence therein, or of or in any similar breach, default or noncompliance
thereafter occurring.  It is further
agreed that any waiver, permit, consent or approval of any kind or

 

28

 

character
on the part of any party hereto of any breach, default or noncompliance under
this Agreement or any waiver on such party’s part of any provisions or
conditions of this Agreement, must be in writing and shall be effective only to
the extent specifically set forth in such writing.  All remedies, either under this Agreement, by law, or otherwise
afforded to any party, shall be cumulative and not alternative.

 

SECTION 5.11.   Governing
Law; Jurisdiction; Waiver of Jury Trial. 
This Agreement shall be governed in all respects by the laws of the
State of Delaware.  No suit, action or
proceeding with respect to this Agreement may be brought in any court or before
any similar authority other than in a court of competent jurisdiction in the
State of New York, and the parties hereto hereby submit to the exclusive
jurisdiction of such courts for the purpose of such suit, proceeding or
judgment.  Each party hereto hereby
irrevocably waives any right it may have had to bring such an action in any
other court, domestic or foreign, or before any similar domestic or foreign
authority.  Each of the parties hereto
hereby irrevocably and unconditionally waives trial by jury in any legal action
or proceeding in relation to this Agreement and for any counterclaim therein.

 

SECTION 5.12.   Severability.  Whenever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid
under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or unenforceability shall
not affect any other provision or any other jurisdiction, but this Agreement
shall be reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision had never been contained herein.

 

SECTION 5.13.    Enforcement.  Each party hereto acknowledges that money
damages would not be an adequate remedy in the event that any of the covenants
or agreements in this Agreement are not performed in accordance with its terms,
and it is therefore agreed that in addition to and without limiting any other
remedy or right it may have, the non-breaching party will have the right to an
injunction, temporary restraining order or other equitable relief in any court
of competent jurisdiction enjoining any such breach and enforcing specifically
the terms and provisions hereof.

 

SECTION 5.14.   Titles
and Subtitles.  The titles of the
sections and subsections of this Agreement are for convenience of reference
only and are not to be considered in construing this Agreement.

 

SECTION 5.15.   No
Recourse.  Notwithstanding anything
that may be expressed or implied in this Agreement, the Company and each
Stockholder covenant, agree and acknowledge that no recourse under this
Agreement or any documents or instruments delivered in connection with this
Agreement shall be had against any current or future director, officer,
employee, general or limited partner or member of any Stockholder or of any
Affiliate or assignee thereof, whether by the enforcement of any assessment or
by any legal or equitable proceeding, or by virtue of any statute, regulation
or other applicable law, it being expressly agreed and acknowledged that no
personal liability whatsoever shall attach to, be imposed on or otherwise be
incurred by any current or future officer, agent or employee of any Stockholder
or any current or future member of any Stockholder or any current or future
director, officer,

 

29

 

employee,
partner or member of any Stockholder or of any Affiliate or assignee thereof,
as such for any obligation of any Stockholder under this Agreement or any
documents or instruments delivered in connection with this Agreement for any
claim based on, in respect of or by reason of such obligations or their
creation.

 

SECTION 5.16.   Counterparts;
Facsimile Signatures.  This
Agreement may be executed in any number of counterparts, each of which shall be
an original, but all of which together shall constitute one instrument.  This Agreement may be executed by facsimile
signature(s).

 

[Rest of page intentionally left blank]

 

30

 

IN WITNESS WHEREOF, the parties hereto have
executed this Amended and Restated Stockholders Agreement as of the date set
forth in the first paragraph hereof.

 

	
   

  	
  PANAMSAT HOLDING CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James W. Cuminale

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James W. Cuminale

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President & General Counsel

  
	
   

  	
   

  
	
   

  	
  PANAMSAT CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ James W. Cuminale

  	
   

  
	
   

  	
   

  	
  Name:

  	
  James W. Cuminale

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President & General Counsel

  
	
   

  	
   

  
	
   

  	
  CONSTELLATION, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alexander Navab

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Alexander Navab

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  CARLYLE PANAMSAT I, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Rosenblum

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Bruce Rosenblum

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  CARLYLE PANAMSAT II, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Rosenblum

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Bruce Rosenblum

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  PEP PAS, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Salem

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Paul Salem

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

Signature Page to PanAmSat Amended and
Restated Stockholders Agreement

 

 

	
   

  	
  PEOP PAS, LLC

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Salem

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Paul Salem

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

Signature Page to PanAmSat Amended and
Restated Stockholders Agreement

 

 

	
   

  	
  CARLYLE
  PARTNERS III-

  TELECOMMUNICATIONS, L.P.

  
	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  TC Group III, L.P.

  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  TC Group III, L.L.C.

  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  TCG Group, L.L.C.

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  TCG Holdings, L.L.C.

  its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Bruce Rosenblum

  	
   

  
	
   

  	
   

  	
  Name: Bruce Rosenblum

  
	
   

  	
   

  	
  Title:   Managing Director

  
	
   

  	
   

  	
   

  
	
   

  	
  PROVIDENCE EQUITY PARTNERS IV, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul Salem

  	
   

  
	
   

  	
   

  	
  Name: Paul Salem

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  KKR MILLENNIUM FUND L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR ASSOCIATES MILLENNIUM L.P.

  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  KKR MILLENNIUM GP LLC

  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Alexander Navab

  	
   

  
	
   

  	
   

  	
  Name: Alexander Navab

  
	
   

  	
   

  	
  Title:  Member

  
						

 

 

Signature Page to PanAmSat Amended and
Restated Stockholders Agreement

 

 

Exhibit A

 

Assignment and Assumption Agreement

 

Pursuant to the Amended and Restated
Stockholders Agreement, dated as of August 20, 2004 and amended and restated as
of October       , 2004 (the “Stockholders
Agreement”), among PanAmSat Holding Corporation, a Delaware corporation
(the “Company”), and each of the stockholders of the Company whose name
appears on the signature pages listed therein (each, a “Stockholder” and
collectively, the “Stockholders”),
                        ,
(the “Transferor”) hereby assigns to the undersigned the rights that may
be assigned thereunder with respect to the Equity Securities so Transferred,
and the undersigned hereby agrees that, having acquired Equity Securities as
permitted by the terms of the Stockholders Agreement, the undersigned shall
assume the obligations of the Transferor under the Stockholders Agreement with
respect to the Equity Securities so Transferred. Capitalized terms used but not
defined herein shall have the meanings assigned to them in the Stockholders
Agreement.

 

Listed below is information regarding the
Equity Securities:

 

	
   

  	
  Number of
  Shares of

  Common Stock

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

IN WITNESS WHEREOF, the undersigned has
executed this Assumption Agreement as of
                         
             ,
20     .

 

 

	
   

  	
  [NAME OF
  TRANSFEREE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
  Acknowledged by:

  	
   

  
	
  PANAMSAT HOLDING CORPORATION

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

 

Exhibit B

 

FSS Operators

 

1.               SES Global and its
subsidiaries (Asiasat, Nahuelsat, Star One, NordicSat, etc.)

2.               Intelsat and its
subsidiaries

3.               Eutelsat and its
subsidiaries (Hispasat, Hispamar, Amazonas)

4.               JSAT

5.               Telesat Canada

6.               Space
Communications Corp. (SCC — Japan)

7.               Loral Orion

8.               Singtel Optus
Australia

9.               Satmex

10.         Measat/Binariang
(Malaysia)

11.         EuropeStar

12.         New Skies

 

Value Added Providers (Resellers, Service Providers, TT&C and
Teleports)

 

1.               HNS

2.               Vyvx

3.               Globecast

4.               Ascent Media

5.               Space Connection

6.               Microspace

 

G2
Competitors

 

1.     Artel

2.     Arrowhead
Global Solutions

3.     Spacelink

4.     Comtech

5.     Marshall
Communications

6.     Lyman
Brothers

7.     AIS

8.     Connaly

9      Stratos

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