Document:

<PAGE>   1
                                                                   EXHIBIT 10.38

                              COAL SALES AGREEMENT

       This COAL SALES AGREEMENT (the "Agreement"), is made and entered into as
of the 15th day of September, 1989, by and between Anker Energy Corporation, a
Delaware corporation, having its principal place of business at Route 12, Box
245, Morgantown, West Virginia 26505 ("Seller"), and Morgantown Energy
Associates, a West Virginia general partnership consisting of MidAtlantic Energy
Co., Dominion Cogen WV, Inc. and Hickory Power Corporation, having its principal
place of business at 256 Russell Avenue, New Martinsville, West Virginia 26155
("Buyer").

                                   WITNESSETH:

       WHEREAS, Seller and its affiliates produce and have available for sale
coal of the quality and quantities hereinafter set forth; and

       WHEREAS, Buyer desires to purchase such coal from Seller, from sources
located in West Virginia, for use at its Morgantown cogeneration facility, an
approximately fifty (50) MW net capacity coal and coal-waste fired generating
plant that Buyer is causing to be developed (the "Facility"), and Seller desires
to sell such coal to Buyer; and

       WHEREAS, the Facility will supply steam to West Virginia University
("WVU") and West Virginia University Hospitals, Inc. (the "Hospital") and
electricity to Monongahela Power Company, an Ohio corporation having its
principal place of business at 1310 Fairmont Avenue, Fairmont, West Virginia
26554 ("Mon Power"); and

       WHEREAS, Buyer and Seller acknowledge the need to maintain a reliable and
adequate supply of steam to the interfaces between the Facility and WVU's and
the Hospital's existing steam distribution systems; and

       WHEREAS, Buyer and Seller acknowledge the need to maintain reliable
deliveries of electricity to Mon Power;

       NOW, THEREFORE, in consideration of the premises and other good and
valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows:

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                                    ARTICLE I

                                   DEFINITIONS

       As used herein, the following terms shall have the meanings set forth
below:

       "Actual Commencement Date" means the actual date on which the Facility
comes into commercial service notice of which shall be given by Buyer to Seller
within thirty (30) days following such date. The Actual Commencement Date may
fall on a day prior or subsequent to the Preliminary Commencement Date.

       "Adjusted Base Price" has the meaning specified in Article IX.

       "Adjustment Date" has the meaning specified in Article IX.

       "APS System Coal Price Base Index" means [*].(1)

       "APS System Coal Price Index" means [*].(1)

       "Average Quality Characteristics" means the quality characteristics of
coal to be supplied under this Agreement, set forth in Section 6.1(a), as
calculated on a monthly average basis.

       "Base Price" has the meaning specified in Article VIII.

       "Business Day" means any day other than a Saturday, Sunday, or other day
on which banks in either Morgantown, West Virginia or New York, New York are
authorized to be closed.

       "Coal Reserves" has the meaning specified in Article II.

       "Contract Year" means the twelve (12) month period beginning on the
Actual Commencement Date and on each anniversary of the Actual Commencement
Date.

       "Delivery Point" means the location or locations at the Facility selected
by the Buyer for the unloading of truck-loads of coal delivered by Seller to
Buyer under this Agreement.

       "Financial Closing" means the closing of the initial construction
financing for the Facility and related facilitities.

-------------------------------
(1)      Portions of this exhibit have been omitted pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission (the
"Commission"). The omitted portions, marked by "[*]," have been filed separately
with the Commission.

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       "Mine" means the mine(s) owned or leased by the Seller or its affiliates
in West Virginia.

       "Operations" means the coal mining operations of Seller or its affiliates
owned or under contract to Seller or its affiliates in West Virginia, including
the Mine, related equipment and facilities.

       "Preliminary Commencement Date" means the date, specified by Buyer to the
Seller, by which Buyer believes that the Facility will have received all
necessary licenses and permits (other than any that are routine in nature and
that cannot be obtained, or are not normally applied for, prior to the time they
are required and that Buyer reasonably expects to obtain in due course), will be
mechanically complete and will have passed Buyer's testing requirements for
commercial service. Buyer, within twelve (12) months of the execution of this
Agreement, shall specify a Preliminary Commencement Date. Buyer shall revise the
Preliminary Commencement Date as necessary during the Testing and Start-up
period such that the Seller shall have at least ninety (90) days notice of the
date anticipated for the Actual Commencement Date of the Facility. As of the
date of execution of this Agreement, Buyer estimates that the Preliminary
Commencement Date will be March 1, 1992, but reserves the right to revise this
estimate and specify the Preliminary Commencement Date at a later date in
accordance with this paragraph.

       "Preliminary Supply Date" means the date, twelve (12) months prior to the
Preliminary Commencement Date, at which the Seller shall have any and all
permits necessary to permit Buyer to have coal supplied from the Operations and
shall have made all necessary arrangements, including the purchase and/or lease
of equipment and hiring of personnel, and is prepared to commence the supply of
coal to the Facility, pursuant to the terms and conditions therein.

       "Project Lender" means Swiss Bank Corporation, New York Branch, and the
several other parties participating in the financing of the Facility.

       "Records" has the meaning specified in Article XI.

       "Referee Laboratory" has the meaning specified in Section (d) of Exhibit
A.

       "Reserve Inventory" means a seventeen (17) day supply of solid fuel for
the Facility, on an equivalent Btu basis, which has been sampled and analyzed
pursuant to Section 6.3 hereof and which meets the Average Quality
Characteristics of Section 6.1 (b) hereof. Such Reserve Inventory must be
located within five (5) miles of the Facility, on Seller's or Buyer's property,
at such one or more locations as Seller shall from time to time specify in
writing to Buyer, and Seller shall protect the Reserve Inventory from weather in
a manner which is acceptable to Buyer and is approved by Buyer in writing.

       "Selling Price" has the meaning specified in Article VII.

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       "SWDA" means the Solid Waste Disposal Agreement executed by and between
Buyer and Anker Energy Corporation, of even date herewith.

       "Term" has the meaning specified in Article III.

       "Testing and Start-up" means a period of twelve (12) months prior to the
Preliminary Commencement Date during which the Facility is undergoing testing.
The Testing and Start-up period may be extended for an additional three (3)
months at Buyer's request.

       "Truck" has the meaning specified in Section 5.1.

       "Unforeseen Circumstance" means any cause or causes which the party
asserting the same is not, despite all reasonable efforts, able to prevent or
overcome, including, but not limited to, any permitting authority's denial or
failure to renew any license or permit, or compliance with any order, injunction
or judgment, by any governmental authority, change in law or regulation, acts of
God, strikes, lockouts or other labor disputes, riots, civil strife, war, acts
of a public enemy, lightning, fires, explosions, severe storms or floods. The
financial inability of either party for whatever reason to perform its
obligations hereunder shall not constitute an Unforeseen Circumstance.

       "Waste Coal" shall have the same meaning as in the WSA.

       "WSA" means the Waste Services Agreement executed by and between Anker
Energy Corporation and Buyer, of even date herewith.

                                   ARTICLE II

                                 SOURCES OF COAL

       Coal delivered under this Agreement shall be a 2"X0" product, with no
intermediate sizes removed, from the Operations and conforming to the
specifications, quality and weights in Article VI. Seller agrees to produce coal
from the Mine and its Operations for the delivery of coal to Buyer hereunder.
Seller represents and warrants that it or its affiliates own, lease or otherwise
have a legal right to mine and sell a sufficient number of tons of recoverable
coal from the Mine and its Operations (the "Coal Reserves") to enable Seller to
supply coal in accordance with the provisions of this Agreement for the Term of
this Agreement. Seller and such affiliates shall not sell, lease, contract to
sell or otherwise transfer or agree to transfer to others, any of its interests
in the coal from the Coal Reserves in any quantity which may jeopardize Seller's
ability to supply the total quantity and quality of coal required under this
Agreement or which may interrupt any

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scheduled deliveries hereunder. Seller also shall maintain the Reserve Inventory
for use as a supply of coal throughout the Term of this Agreement. Seller shall
be responsible for transportation arrangements and all transportation and other
costs associated with the loading and/or handling of coal from its Operations to
the Delivery Point at the Facility, including, without limitation, obtaining, at
is own expense, by Financial Closing, and maintaining in full force and effect,
any and all permits necessary to permit Buyer to have such coal supplied from
the Operations in accordance with the terms hereof.

       Seller may supply coal from sources in West Virginia other than Seller's
Mine and Operations if coal from such sources has Average Quality
Characteristics equal to or better than the coal being derived from Seller's
Mine and Operations and if Buyer is not economically disadvantaged under this
Agreement.

                                   ARTICLE III

                                      TERM

       Unless sooner terminated in accordance with the terms hereof, this
Agreement shall commence on the date hereof and continue in effect until fifteen
(15) years from the Actual Commencement Date, as defined herein (the "Term");
provided, however, that the Term of this Agreement as defined herein shall be
automatically extended and renewed for additional terms of [*](2) unless one
party notifies the other in writing, no less than six months prior to the last
day of the initial Term or any succeeding [*],(2)of its intent not to extend and
renew this Agreement for an additional [*].(2)

       In the event the Agreement is not extended for [*],(2) such additional
[*](2) terms, the parties agree to negotiate in good faith an agreement
covering shipments during the outstanding [*],(2) if no option periods have
been exercised, or [*],(2) if one of the option periods has been exercised.
If the parties cannot agree on a new sales agreement, Seller shall retain the
right of first refusal on purchases by Buyer from third parties, provided that
Buyer intends to purchase the coal on a contract basis and that Seller agrees
to match the terms and conditions contained in the lowest priced bona fide
proposal.  Seller shall have a reasonable period to elect to match such terms
and conditions, not to exceed [*](2) following notice from Buyer of such terms
and conditions.  If Seller elects not to exercise its right of first
refusal,Buyer shall thereafter be free to contract for the remaining period
based on the terms and conditions specified in the notice.

                                   ARTICLE IV

                                    QUANTITY

       4.1 Quantity After Actual Commencement Date. Seller shall sell and
deliver hereunder to Buyer and Buyer shall purchase hereunder following the
Actual Commencement Date and for the Term of this Agreement, the coal
requirements of the Facility; as long as approximately sixty-five (65) percent
of the solid fuel on a tonnage basis used in the Facility is Waste Coal. While
Buyer anticipates the coal requirements to be 90,000 to 120,000 tons per year,
these volumes do not represent guaranteed minimum or maximum amounts.

-------------------------------
(2)      Portions of this exhibit have been omitted pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission (the
"Commission"). The omitted portions, marked by "[*]," have been filed separately
with the Commission.

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<PAGE>   6

The Buyer shall provide written notice to Seller no later than ninety (90) days
prior to the beginning of each Contract Year indicating expected volumes for
that Contract Year. Deliveries shall be made in approximately equal monthly
quantities during each Contract Year, taking into account Buyer's planned
maintenance of the Facility. Deliveries (which may include Sunday deliveries if
necessary) shall be made as mutually agreed to by the parties hereto and the
City of Morgantown. By the 15th of each month, Buyer shall provide an update of
the coal requirements for the following month. The term "ton" as used in this
Agreement shall mean a net ton of 2,000 pounds avoirdupois weight. In the event
that the fuel requirements of the Facility change so that Waste Coal does not
account for at least approximately sixty-five (65) percent of the solid fuel
for the Facility on a tonnage basis, Seller has the right to supply coal
representing thiry-five (35) percent of the total solid fuel used by the
Facility, determined on a tonnage basis.

       4.2 Quantity During Testing and Start-up. During Testing and Start-up and
until the Actual Commencement Date occurs, the amount and timing of the coal
supply will be established by Buyer, on the basis of a notice to the Seller
fifteen (15) months prior to the Preliminary Commencement Date or such other
date as is mutually agreed upon prior to the supply requirement. Buyer in its
sole discretion may revise the amount and timing of the supply of coal during
Testing and Start-up and until the Actual Commencement Date to meet its
requirements; provided, however, that the Seller will have at least forty (40)
days notice of Buyer's requirement for delivery of coal during Testing and
Start-up of the Facility and until the Actual Commencement Date with reasonable
updates provided by Buyer as required in connection with the Testing and
Start-up of the Facility. By the 15th of each month, Buyer shall provide an
update of the coal requirements for the following month. The Seller shall
deliver said amounts of coal to the Delivery Point up to the monthly amount
specified in the notice given to Seller hereunder, provided that such a supply
requirement occurs on or after the Preliminary Supply Date.

                                    ARTICLE V

                                    DELIVERY

           5.1 Point of Delivery. The Delivery Point for all coal hereunder
shall be location(s) at the Facility designated by Buyer. Seller shall load all
coal in self-unloading trucks (the "Trucks") compatible with the design of the
Facility, notice of which design shall be provided to Seller within six (6)
months from the date of execution of this Agreement, with reasonable updates to
be provided as required by Buyer. No coal is to be transported in the Trucks
without (i) being covered in accordance with standard industry practice and
requirements of law; (ii) complying with state and local weight restrictions;
and (iii) utilizing routes through the City of Morgantown, West Virginia,
designated by local officials in accordance with law. Buyer shall have the right
to reject

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any coal transported in the Trucks that is not so covered, is not in compliance
with such weight restrictions or does not use such designated routes. Buyer
shall consult with Seller concerning the designation of routes by the City of
Morgantown and notify Seller of and permit Seller to participate in any meetings
with city officials of Morgantown concerning such designation. If the
designation of routes by the City of Morgantown does not permit Seller to
transport coal either across the Star City Bridge and along Monongahela
Boulevard and Beechurst Avenue or along U.S. Route 48 and along University and
Beechurst Avenue, and such designation affects Seller's costs, then such
designation shall be a Regulatory Change as defined in Section 1.5 of Exhibit C
of the WSA and the Base Price and Adjusted Base Price shall be adjusted and any
dispute resolved in accordance with the procedures therein. Notwithstanding
anything to the contrary contained in this Agreement, all coal delivered
hereunder shall be used exclusively as fuel in the Facility.

       An initial schedule of delivery hours shall be established by the parties
to this Agreement no later than eighteen (18) months after the effective date of
this Agreement. Such schedule may be changed from time to time as required to
permit Buyer to operate the Facility in compliance with all laws and
regulations, including but not limited to all local and county ordinances and
regulations and to insure reliable operation of the Facility.

       Seller and its contractors, if any, utilized for the purpose of
carrying-out Seller's obligations hereunder when on Buyer's property shall
observe all reasonable and appropriate work and safety rules and regulations
established by Buyer for the delivery of coal; provided, however, that Buyer's
rules, regulations or operations shall not unduly delay or interfere with the
unloading of coal at the Facility.

       5.2 Title and Risk. The title to and risk of loss of all coal covered by
this Agreement shall remain with Seller as long as it remains in the Trucks. The
title to and risk of loss for each truckload of coal covered by this Agreement
shall pass to Buyer as soon as any of the coal to be delivered in that delivery
is unloaded from the Trucks at the Delivery Point.

                                   ARTICLE VI

                       SPECIFICATIONS, QUALITY AND WEIGHTS

       6.1 Specifications.

              (a) Coal delivered hereunder shall conform, on a monthly average
basis, to the "as received" specifications indicated in the column entitled
"Average" below:

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<TABLE>
<CAPTION>
                                                   Rejection
                              Average                Limits
                              -------              ---------
<S>                          <C>                   <C>
       Moisture (%)             5.5                > or equal to 8.0
       Ash (%)                 15.0                > or equal to 25.0
       S02 1b/MMBtu             3.3                > or equal to 7.0
       Sulfur (%)               2.0                > or equal to 3.85
       Btu/lb.               12,000                < or equal to 10,000
       Volatile (%)            28.0                < or equal to 22.0
</TABLE>

              (b) Compliance with average monthly specifications of Section 6.1
(a) shall be waived, provided that the weighted average quality of the coal
received hereunder and the Waste Coal received pursuant to the WSA meets the
"as-received" specifications on a weekly basis indicated in the column below:

<TABLE>
<CAPTION>

                                                         Average
                                                         -------
<S>                                                      <C>
       Moisture (%)                                         8.0
       Ash (%)                                             41.7
       S02 1b/MMBtu                                         7.0
       Sulfur (%)                                           2.7
       Btu/lb.                                             7775
       Size (% max less than or equal to 100 mesh)         22.0
</TABLE>

              The S02 per MMBtu specification must be met on a daily basis.

       In the event that during the 24 months following the Actual Commencement
Date, Buyer determines that an increase in the daily average S02 per MMBtu
limit of 7.0 pounds to 7.6 pounds and in the weekly average sulfur limit
from 2.7% to 2.95% would not result in a violation of the air quality permit
for the Facility based on the actual operating experience of the Facility,
Buyer agrees to relax the daily average S02 per MMBtu limit to 7.6 pounds and
the weekly average sulfur limit to 2.95 percent.

              (c) In the event that the weighted average weekly quality of the
coal and the Waste Coal delivered to the Facility by Seller has a moisture, ash,
or sulfur content above or a Btu/lb content below the specifications in Section
6.1 (b) for any four weeks in any three month period, or in the event that the
weighted average daily quality of the coal and the Waste Coal delivered to the
Facility by Seller has an S02 content above the specifications in Section 6.1
(b) for any seven days in any three month period, Buyer, by notice to Seller,
may suspend further deliveries of coal hereunder. Upon receipt of such notice,
Seller shall undertake diligently and in good faith all such actions as shall be
necessary to correct the conditions causing the coal to deviate from such
specification(s)

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or in the event such correction cannot be accomplished, to obtain an alternate
source of coal supply at no additional cost (including, without limitation,
transportation costs) to Buyer on a delivered cents per million Btu basis.
During the period of any such suspension, Seller shall advise Buyer every
forty-eight (48) hours in writing of Seller's determinations as to the nature of
such conditions, all efforts made and/or to be made by Seller to correct such
conditions and the results of such efforts. Seller shall implement any
reasonable and economically practical corrective actions proposed in good faith
by Buyer. Such suspension shall continue until Seller provides adequate
assurances in writing to Buyer that such conditions have been corrected and
Buyer has in writing accepted Seller's assurances, which acceptance shall not be
unreasonably withheld or delayed.

              (d) In the event that, despite Seller's diligent and good faith
efforts as aforesaid, Seller is unable within two months after the date of
suspension either (1) to provide coal meeting all specifications under Section
6.1 (a), or (2) to obtain an alternate source of coal supply at no additional
cost (including, without limitation, transportation costs) to Buyer on a
delivered cents per MMBtu basis, then Buyer may cancel this Agreement by notice
to Seller effective not later than six months from the date of such notice, and
recover damages as set forth in Section 16.4.

              (e) Notwithstanding any other provision of this Agreement, during
the period of any suspension of deliveries pursuant to Section 6.1 (c), Buyer
may acquire, by good faith purchases, a quantity of substitute coal (in
equivalent Btu's) reasonably similar in quality to the coal described by the
specifications in Section 6.1 (a), up to the quantity not delivered by Seller as
a result of such suspension. Unless Seller's nonperformance is excused by an
Unforeseen Circumstance, Seller shall reimburse Buyer the excess, if any, of the
total delivered cost to Buyer of such substitute coal on a cents per MMBtu basis
over the Selling Price. Seller shall make such payment within thirty (30) days
of receipt from Buyer of an invoice specifying such excess costs.

              (f) Notwithstanding any other provision of the Agreement, in the
event coal delivered hereunder is equal to or exceeds [*](3) sulfur dioxide per
million Btu and/or is equal to or less than [*](3) Btu/lb in any truckload,
Buyer may reject such truckload. Buyer may "reject," for purposes of this
Agreement, any truckload of coal that does not meet the requirements set forth
in this Section 6.1 (f) at any time before or after such truckload is delivered
to the Facility. If Buyer determines, pursuant to Exhibit A, that any truckload
of coal failed to meet the Rejection Limits of Section 6.1 (a) after such coal
is no longer removable from the Facility (in Buyer's sole discretion) or has
been used in the Facility, then Seller shall be assessed liquidated damages
which reflect additional power, limestone, and waste disposal costs.

-------------------------------
(3)      Portions of this exhibit have been omitted pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission (the
"Commission"). The omitted portions, marked by "[*]," have been filed separately
with the Commission.

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<PAGE>   10

Liquidated damages for S02 per ton =       [*](4)

       Example

       [*](4)

       Liquidated damages per ton = [*](4)

Liquidated damages for Btu/lb per ton =    [*](4)

       Example

       [*]:(4)

       Liquidated damages per ton = [*](4)

These liquidated damages are cumulative and in addition to any other liquidated
damages assessed pursuant to Section 10.1 hereof.

       6.2 Sole and Exclusive Remedies. Except as provided in Section 6.1 (d)
Buyer's right to suspend deliveries and purchase substitute coal and the
possible resulting cancellation of this Agreement, and Buyer's right to reject
deliveries, all pursuant to Section 6.1, together with the compensation for
variations in quality provided for under Article X and Section 6.1 (f) and
Buyer's right to damages under Section 16.4, shall be Buyer's sole and exclusive
remedies for Seller's failure to deliver coal which conforms to any of the
quality specifications herein.

       6.3 Sampling and Analysis. Procedures for, and the frequency of, coal
sampling and analysis shall be established in accordance with Exhibit A. For the
purpose of carrying out sampling in addition to that specified as an obligation
of the Seller pursuant to Exhibit A, Buyer may collect samples at the Operations
for analysis or establishing Seller's compliance with the terms of this
Agreement. To accomplish these tasks, Seller shall provide Buyer and/or its
contractor(s), upon reasonable advance notice, with access to the Operations at
such times as may be reasonably required by Buyer.

       Buyer and its contractors, if any, utilized for the purpose of
carrying-out Buyer's obligations or exercising its rights hereunder when at the
Operations (i) shall observe all reasonable and appropriate work and safety
rules and regulations established by the Seller for its own employees and
contractors and (ii) shall not interfere with the Seller's activities at the
Operations; provided, however, that the Seller's rules, regulations or
operations shall not unduly interfere with the performance of Buyer's
obligations or exercise of its rights hereunder.

-------------------------------
(4)      Portions of this exhibit have been omitted pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission (the
"Commission"). The omitted portions, marked by "[*]," have been filed separately
with the Commission.

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                                   ARTICLE VII

                                  SELLING PRICE

       The Selling Price to be paid by Buyer to Seller for each ton of coal
delivered hereunder shall be the Base Price, as stated in Article VIII (or the
Adjusted Base Price, as computed pursuant to Article IX) plus all applicable
sales and use taxes levied upon the coal delivered hereunder and not taken into
consideration in Article IX.

                                  ARTICLE VIII

                                   BASE PRICE

       The Base Price per ton delivered at the Delivery Point shall be [*](5)
per ton, effective as of May 1, 1989.

                                   ARTICLE IX

                            ADJUSTMENTS TO BASE PRICE

       The Base Price shall be adjusted quarterly according to changes in the
APS System Coal Price Index. The resulting price shall be referred to as the
"Adjusted Base Price." The APS System Coal Price Base Index is [*].(5) Beginning
October 1, 1989 and each January 1, April 1, July 1, and October 1 thereafter
(the "Adjustment Date"), the Base Price shall be adjusted by determining the
percentage change [*].(5) The Adjusted Base Price is equal to the Base Price
multiplied by one plus the percentage change. (See example calculation attached
hereto as Exhibit B.) If the APS System Coal Price Index should be discontinued,
and no equivalent replacement index is specified by APS, a new index or indices
most accurately reflecting changes in the applicable cost(s) of Seller will be
substituted by mutual agreement of the parties hereto.

-------------------------------
(5)      Portions of this exhibit have been omitted pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission (the
"Commission"). The omitted portions, marked by "[*]," have been filed separately
with the Commission.

                                       11
<PAGE>   12

                                    ARTICLE X

                 COMPENSATION TO BUYER FOR VARIATIONS IN QUALITY

       10.1 Compensation to Buyer. Using the analytical data obtained in
accordance with Section 6.3 hereunder and the analytical data obtained in
accordance with Section 6 of the WSA, on a monthly basis Buyer shall calculate
the weighted average "as received" Btu per pound, percent ash, and pounds of S02
per MMBtu of coal and Waste Coal delivered to the Facility by Seller during the
month. Compensation due to Buyer for variations in the calculated weighted
monthly average "as received" Btu per pound, percent ash and pounds of S02 per
MMBtu shall be in the form of a credit to be applied against the next payment
due Seller. Buyer's credits shall be determined as follows:

              (a)    If the weighted average Btu "as received" on a monthly
                     average basis is less than [*](6) Btu per pound, then the
                     credit due to Buyer shall be computed in accordance with
                     the following formula:

                     CB = [*](6)

              (b)    If the weighted average percent ash "as received" on a
                     monthly basis is greater than [*](6) percent, then the
                     credit due Buyer shall be computed in accordance with the
                     following formula:

                     CB = [*](6)

              (c)    If the weighted average pounds of S02 per MMBtu "as
                     received" on a monthly basis is [*],(6) then the credit due
                     Buyer shall be computed in accordance with the following
                     formula:

                     CB = [*](6)

              (d)    If the weighted average pounds of S02 per MMBtu "as
                     received" on a monthly basis is [*],(6) then the credit due
                     Buyer shall be computed in accordance with the following
                     formula:

                     CB = [*](6)

                     provided, however, that inclusion of this formula shall not
                     give rise to any implication that the Rejection Limits are
                     other than as set forth in Section 6.1.

-------------------------------
(6)      Portions of this exhibit have been omitted pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission (the
"Commission"). The omitted portions, marked by "[*]," have been filed separately
with the Commission.

                                       12
<PAGE>   13

       In the above formulas:

              CB     is the credit due Buyer

              B      is the weighted average "as received" Btu per pound for
                     coal and Waste Coal Delivered by Seller during the month

              P      is 0.35 times the Adjusted Base Price for coal shipped by
                     Seller during the month plus 0.65 times the Initial Amount
                     or Adjusted Amount for Waste Coal shipped by Seller during
                     the month

              T      is the tons of coal and Waste Coal delivered by Seller in
                     the month

              A      is the weighted average "as received" percent ash for coal
                     and Waste Coal delivered by Seller during the month

              D      is the Adjusted Disposal Fee for Conforming Waste disposed
                     of during the month

              S      is the weighted average "as received" pounds of SO2 for
                     coal and Waste Coal delivered by Seller during the month

An example calculation is attached hereto as Exhibit F.

       10.2 Notice of Credit. As soon as practical after the end of each month,
but no later than the 25th of the following month, Buyer shall advise Seller in
writing of the average Btu per pound, the average percent ash, the average S02
per MMBtu and the total credit, if any, due Buyer.

                                   ARTICLE XI

                                      AUDIT

       Seller and Buyer agree to maintain books, records, documents and other
evidence to such an extent and in such detail as will properly reflect all items
for which payment or adjustment in the Base Price (or Adjusted Price) is claimed
under this Agreement ("Records"). Upon the request of either party, the other
party shall make available at its offices said Records for inspection, audit or
reproduction by any authorized representative. Seller and Buyer shall preserve
all such Records relevant to each shipment of coal hereunder for a period of two
(2) years after payment of such shipment, during which period either party shall
complete any audit that may be desired. Should discrepancies or questions arise,
the relevant Records shall be preserved until resolution is reached.

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<PAGE>   14

                                   ARTICLE XII

                                     PAYMENT

       12.1 Payment Schedule. All amounts properly due and payable by Buyer to
Seller pursuant to this Agreement for coal delivered by Seller to the Facility
as measured by Buyer in accordance with the procedures set forth in Exhibit C
shall be payable (1) on the thirtieth day of the month (except that it shall be
payable on the twenty-eighth day of each February) in respect of material
supplied from the first to the fifteenth (15th) day of the month, and (2) on the
fifteenth (15th) day of the following month in respect of material supplied from
the sixteenth (16th) to the last day of the month; provided, however, that if
Project Lender becomes successor to the Buyer under this Agreement, payment for
such coal (i) delivered before or on the tenth (10th) of any month shall be
payable on the twenty-fifth (25) of the same month and (ii) delivered after the
tenth (10th) of any month shall be payable on the twenty-fifth (25) of the next
following month. No such amount shall be due and payable until Buyer is provided
quality reports for all coal shipped and a manifest indicating the source of
shipment for each truckload received during the period. Buyer (or Project Lender
in the event of such succession) shall provide with each payment a written
statement showing the calculation of such payment.

       If the date on which payment is due hereunder shall not be a Business
Day, the payment otherwise due thereon shall be due and payable on the next
succeeding Business Day, with the same force and effect as if paid on the date
due hereunder.

       12.2 Payment Schedule Prior to Final Completion. During Testing and
Start-up and until final completion of the Facility satisfactory to Project
Lender, all amounts properly due and payable by Buyer to Seller for coal
delivered by Seller to the Facility, as measured by Buyer in accordance with the
procedures set forth in Exhibit C, before or on the tenth (10th) of any month
shall be payable on the twenty-fifth (25th) of the same month, and amounts due
and payable for coal delivered after the tenth (10th) of any month shall be
payable on the twenty-fifth (25th) of the next following month.

       12.3 Disputed Payments. In the event of a dispute in the amount of any
payment, Seller or Buyer shall promptly notify the other party as to the basis
for the dispute. Buyer and Seller shall seek to resolve the dispute as quickly
as possible. In the event that resolution has not been reached within thirty
(30) days of such notification, Buyer shall deposit the amount in dispute into
an interest-bearing escrow account. Upon resolution, each party shall receive
the amount due it in light of such resolution, plus interest earned on that
amount in the escrow account, if applicable.

       12.4 Delinquent Payment. If Buyer fails to pay for all coal received
during any period for which documentation has been received by its due date,
unless there is a dispute pursuant to Section 12.2 hereof, then the portion of
the payment which is delinquent shall bear interest, at the prime rate per annum
plus one and one-half percent

                                       14
<PAGE>   15

(1 1/2%) as announced from time to time by Mellon Bank, N.A. of Pittsburgh, PA
as its prime rate, from such due date until the date such delinquent payment is
made, without prejudice to any other rights or remedies available to Seller as a
result of Buyer's failure to pay such amount; provided, however, that Seller
waives the right to file, effect, enforce or otherwise assert any liens on, or
to assert any claim against, the Facility or the steam system being constructed
under the Contract for Engineering, Procurement and Construction of the Steam
Transmission Line for the Morgantown/WVU Energy Facility by and between Buyer
and Mellon Stuart Company, dated as of August 31, 1989 (the "Steam System") and
acknowledges and agrees that no claim for payment under this Agreement shall
result in any lien on, or security interest in, the Facility or the Steam
System.

                                  ARTICLE XIII

                          INSURANCE AND INDEMNIFICATION

       13.1 Insurance. Seller shall maintain or cause to be maintained for the
Term of this Agreement liability and personal injury insurance in amounts
reasonably acceptable to Buyer naming Project Lender, Mon Power and Buyer,
respectively, as additional insureds as their interests may appear. Such
insurance shall include the following:

       (a)    comprehensive general liability insurance for bodily injury and
              property damage of at least $1,000,000 per occurrence;

       (b)    comprehensive automobile liability insurance for bodily injury or
              property damage covering the operation of all vehicles used in
              connection with the performance of any obligations under this
              Agreement of at least $1,000,000 per person and $1,000,000 per
              occurrence for bodily injury and $1,000,000 per occurrence for
              property damage;

       (c)    workers' compensation and employer's liability insurance
              (including coverage for claims under Section 23-4-2 of the West
              Virginia Code and/or Mandolidis v. Elkins Industries, Inc., 246
              S.E.2d 907 (1978)) of at least $1,000,000 or, if a limit for such
              insurance is established by law, in such amount;

       (d)    Excess Liability Insurance on an occurrence basis, which shall
              afford coverage not less than $5,000,000 per occurrence and
              $5,000,000 per occurrence and $5,000,000 in the aggregate over and
              above coverage provided by the policies described in paragraphs
              (a), (b), and (c) above. Excess policies shall not contain
              endorsements which restrict coverages as set forth in paragraphs
              (a), (b), and (c).

                                       15
<PAGE>   16

Buyer may also request and shall then be furnished by Seller with evidence of
such insurance maintained by Seller during the Term of this Agreement.

       13.2 Indemnification. Except as expressly provided elsewhere herein,
Buyer and Seller each agree to indemnify and hold harmless the other, each
other's officers, affiliates, assigns, and employees, from and against all
liabilities and expenses (including reasonable attorneys' fees) which the other
may incur to persons or entities not parties to this Agreement for injury to or
death of persons or damage to or destruction of property in connection with the
Agreement or the coal provided hereunder, whether such liabilities arise in
contract, tort (including negligence or strict liability) or otherwise, to the
extent such liabilities arise out of the indemnifying party's negligence,
intentional acts or omissions, or the negligence, intentional acts or omissions
of the indemnifying party's agents, contractors, officers, directors, partners
or employees.

                                   ARTICLE XIV

                             UNFORESEEN CIRCUMSTANCE

       14.1 Effect of Unforeseen Circumstance. Neither Seller nor Buyer shall be
liable to the other for any failure or delay in performance of any obligation
under this Agreement due to the occurrence of an Unforeseen Circumstance. The
party whose performance under this Agreement has been affected by an Unforeseen
Circumstance shall provide prompt written notice of the occurrence and of the
cessation of such Unforeseen Circumstance to the other party. In each instance,
the party affected by such Unforeseen Circumstance shall exercise reasonable
diligence to resume operations hereunder; provided, however, that each party
shall have the right to settle any strikes, lockouts or industrial disputes in
its sole discretion and the aforesaid requirement of exercising reasonable
diligence to resume operations shall not require either party to accede to any
demand or position of any other party involved in such strike, lockout or
industrial dispute. Deliveries not made or not accepted due to an Unforeseen
Circumstance shall not be made up except by mutual agreement by the parties
hereto.

       14.2 Allocation. During any period in which mining, preparing, loading,
delivering and/or selling coal by Seller hereunder is curtailed as a result of
an Unforeseen Circumstance and Seller cannot deliver all of the requirements of
coal under this Agreement, Seller may, as a minimum, prorate its available coal
from its Operations among all of Seller's customers of its Operations, including
Buyer, in proportion to its prior commitments to such customers. In agreements
or contracts entered into between Seller and any customer other than Buyer,
Seller has not committed and shall not commit to any such customer that it would
have first call on any coal similar in quality to the coal required to be
delivered under this Agreement during an Unforeseen Circumstance. Any such
allocation by either party shall be subject to reasonable audit by the other
party. Notwithstanding the foregoing, in the event of an Unforeseen Circumstance
that limits

                                       16
<PAGE>   17

Seller's ability to deliver coal to Buyer, Seller shall allow Buyer access to
the Reserve Inventory (or another source identified by Seller) so that Buyer can
transport coal from the Reserve Inventory (or coal in the same quantity on a Btu
basis from such other source) to the Facility with its own trucks. In such
event, the Base Price or Adjusted Base Price shall be reduced by the amount of
Seller's reasonable transportation costs for transporting the coal from the
Reserve Inventory at such time, subject to verification (or for the reasonable
costs for transporting coal from such other source).

14.3 Limitation on Continuance. If any Unforeseen Circumstance affects the
performance of Seller and/or Buyer to the extent that it reduces the quantity of
coal delivered hereunder by more than [*](7)% of the scheduled quantity during
any Contract Year, and if such Unforeseen Circumstance appears to be of a
continuing nature, then either Seller or Buyer may, by notice to the other,
propose revised terms and conditions, including, without limitation,
modifications of price or pricing provisions, quality specifications and
quantities to be sold and purchased, to govern during the remainder of the Term
of this Agreement.

       14.4 Sales and Purchases During Unforeseen Circumstance. During any
period in which transporting, accepting, unloading, reclaiming and/or utilizing
of coal delivered hereunder at Buyer's Facility is curtailed or suspended as a
result of an Unforeseen Circumstance, Seller may sell coal from Seller's
Operations to third parties which, but for such Unforeseen Circumstance, would
have been delivered and sold to Buyer hereunder; provided, however, that Seller
shall not sell, lease, contract to sell or otherwise transfer or agree to
transfer to others, any of its interests in the coal from the Coal Reserves in
any quantity which may jeopardize Seller's ability to supply the total quantity
and quality of coal required under this Agreement or which may interrupt any
scheduled deliveries hereunder after such Unforeseen Circumstance has ceased to
curtail or suspend the transporting, accepting, unloading, reclaiming and/or
utilizing of coal delivered hereunder by Seller is curtailed or suspended as a
result of an Unforeseen Circumstance, Buyer may purchase coal for use at Buyer's
Facility from third parties in quantities and for a term reasonably anticipated
to meet such curtailment or suspension which, but for such Unforeseen
Circumstance, would have been accepted and purchased from Seller hereunder.

                                   ARTICLE XV

                                  NONDISCLOSURE

       Neither party shall disclose the Selling Price, the Base Price, the
Adjusted Base Price or any component of the Base Price or Adjusted Base Price to
any third party

-------------------------------
(7)     Portions of this exhibit have been omitted pursuant to a request for
confidential treatment filed with the Securities and Exchange Commission (the
"Commission"). The omitted portions, marked by "[*]," have been filed separately
with the Commission.

                                       17
<PAGE>   18

without the written consent of the other party, which consent shall not be
unreasonably withheld, unless counsel advises that such disclosure is required
by law either for regulatory purposes or for evidentiary purposes in any legal
or arbitration proceeding; provided, however, that Buyer or Seller may disclose
any of the terms of this Agreement, including its aforementioned price terms, to
any financial institution, any party having a security interest in the Facility
or any part thereof, any assignee, or any other entity as Buyer or Seller, in
its sole discretion, deems necessary.

                                   ARTICLE XVI

                          TERMINATION AND CANCELLATION

       16.1 Termination Upon Default.

              (a) Except as provided in Section 6.1 (d) and Section 16.1 (b), no
default by either party to this Agreement in the performance of any of its
covenants or obligations hereunder which, except for this provision, would be a
legal basis for cancellation or termination of this Agreement by the other
party, shall give or result in such a right unless and until the party
committing such default shall fail to correct such default within (30) days
after receipt by such defaulting party of a written notice of claim of such
default stating that such notice is a "Notice of Default" hereunder, unless such
default could not have been corrected within such thirty (30) day notice period
and the party in default can demonstrate that steps have been taken to cure the
default within a reasonable period of time.

              (b)    In the event of Buyer's default in payment, Seller may
                     suspend further coal deliveries hereunder until such
                     default has been corrected. If such default is not
                     corrected within thirty (30) days after receipt by Buyer of
                     a written notice of such default, stating that such notice
                     is a "Notice of Default" hereunder, then Seller may cancel
                     this Agreement upon written notice to Buyer.

                            (c) Within six (6) months after the termination for
                     any reason of either the WSA or the SWDA, either party
                     (unless such termination was due to a default by such
                     party) under either of those agreements may cancel this
                     Agreement upon twelve (12) months written notice to the
                     other party.

                        16.2 Nonwaiver. The specifications of remedies herein
                     shall not be deemed to exclude the parties from any other
                     legal or equitable remedies they may have with respect to
                     this Agreement, except as provided in Section 6.2 and 16.3
                     hereof.

                                       18
<PAGE>   19

       16.3 Disclaimer of Consequential Damages. EXCEPT AS OTHERWISE EXPRESSLY
PROVIDED IN THIS AGREEMENT, NONE OF THE PARTIES TO THIS AGREEMENT SHALL BE
LIABLE TO THE OTHER FOR ANY SPECIAL, INDIRECT OR CONSEQUENTIAL DAMAGES ARISING
OUT OF THE PERFORMANCE OF OR DEFAULT UNDER THIS AGREEMENT.

       16.4 Buyer's Remedy in Event of Seller's Breach by Failure to Deliver
Contract Tonnage. In the event Buyer exercises its right to cancel this
Agreement pursuant to the terms of Section 6.1 (d), then Seller shall become
liable to Buyer for damages equal to the difference between the cost of coal
purchased in substitution for that due from Seller for the remainder of the Term
of this Agreement and the Selling Price.

       At any time during the period in which Seller is liable for damages as
described above, Seller shall have the right to avoid paying further damages
under this Section 16.4 by supplying coal which Buyer determines meets the
Average Quality Characteristics. Seller shall notify Buyer in writing sixty (60)
days in advance if it intends to resume coal shipments hereunder and provide
Buyer with documentation as to the quality of coal and as to how it intends to
supply the coal through the remaining Term of the Agreement. Buyer will review
the documentation and inform Seller as to the substitute coal's acceptability
within ten (10) days, and Buyer shall not unreasonably withhold acceptance. If
Seller resumes shipment under this provision, Seller shall be under the same
obligations as if this Agreement were still in effect, and Seller shall continue
to be liable for all damages incurred by Buyer from the date of cancellation of
shipment to the Facility. Such resumption shall not affect Buyer's rights to
cancel this Agreement again under Section 6.1 (d) and seek damages under this
Section 16.4.

       16.5 Termination in Certain Circumstances. Notwithstanding any other
provision in this Agreement:

              (a) in the event that the Actual Commencement Date does not occur
on or before April 30, 1993, Seller may terminate this Agreement by notice to
Buyer, and in the event the Actual Commencement Date does not occur on or before
April 30, 1994, Buyer may terminate this Agreement by notice to Seller;

              (b) in the event that there is a revocation, abrogation or
termination, due to any cause beyond the reasonable control of Buyer, of the
contracts pursuant to which the Facility supplies steam to WVU and the Hospital
or power to Monongahela Power Company, and if such revocation, abrogation or
termination by any party for any reason is not the result of a material default
of contract claim with merit against WVU, the Hospital or Monongahela Power
Company that would make the Buyer whole, Buyer may terminate this Agreement; or

              (c) in the event that Financial Closing does not occur on or
before September 30, 1989, either Buyer or Seller may terminate this Agreement
by giving notice of such termination on or before October 15, 1989.

                                       19
<PAGE>   20

                                  ARTICLE XVII

                                  MISCELLANEOUS

       17.1 Waivers and Remedies. The failure of either Seller or Buyer to
insist in any one or more instances upon strict performance of any of the
provisions of this Agreement or to take advantage of any of its rights hereunder
at any one time shall not be construed as a waiver of any such provisions or the
relinquishment of any such rights at any future time or times, but the same
shall continue and remain in full force and effect.

       17.2 Notices. Any notice, request, demand or other communication related
to this Agreement shall be in writing and shall be delivered by hand or
transmitted by telex, telecopier, courier, overnight delivery or certified mail,
return receipt requested, to the other party at the following numbers and
addresses and will be deemed given when actually received:

                 If to the Seller:

                 Anker Energy Corporation
                 Route 12, Box 245
                 Morgantown, West Virginia  26505
                 Attention:  T.J. Jackson
                 Telecopy No:  304-291-3692
                 Telephone:  304-296-1616

                 If to the Buyer:

                 Morgantown Energy Associates
                 256 Russell Avenue
                 P.O. Drawer 40
                 New Martinsville, WV  26155
                 Attention:  Michael H. Schwartz
                 Telecopy No:  412-788-1914
                 Telephone:  412-788-0404

or at such address or number as the party may designate by notice to the other
party in accordance with this Section.

       17.3 Assignment and Successors.

              (a) Buyer shall have the right to assign its interest herein or
assign or sublet its interest in the Facility to (i) any successor, affiliate,
subsidiary, partner or

                                       20
<PAGE>   21

related entity, (ii) any person, corporation, bank, trust company, association
or other business entity as security in connection with obtaining or arranging
financing relating to the Facility or to any such business entity upon
enforcement of such security interest or (iii) any unrelated entity or
individual with the written approval of Seller (not to be unreasonably
withheld). No assignment of this Agreement shall relieve the Buyer of its
obligations hereunder.

              (b) The Seller may assign its interest herein to any entity under
common control with the Seller or subsidiary upon written notice to Buyer.
Seller may assign its interest to others only with the express written consent
of Buyer, such consent not to be unreasonably withheld. No assignment of this
Agreement shall relieve the Seller of its obligations hereunder.

              (c) This Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and permitted assigns.

       17.4 Independent Contractor. The Seller's relationship with Buyer under
this Agreement shall be that of an Independent Contractor. The Seller is to
exercise its own discretion on the method and manner of performing its
obligations under this Agreement, including without limitation, the selling of
coal to Buyer. Buyer will not exercise control over the Seller or its employees.
The employees, methods, equipment and facilities used by the Seller shall at all
times be under its exclusive direction and control. Nothing in this Agreement
shall be construed to designate the Seller, or any of its employees, as
employees, agents, joint venturers or partners of Buyer.

       17.5 Representation and Warranties.

              (a) Each party to this Agreement represents and warrants that this
Agreement has been duly authorized, executed and delivered by each such party,
respectively, and constitutes the legal, valid and binding obligation of each
such party, respectively, enforceable in accordance with its terms, except as
such enforceability and the availability of certain rights and remedies provided
for in this Agreement may be limited by bankruptcy, insolvency or other similar
laws of general application affecting the enforcement of creditors' rights or by
general principles of equity.

              (b) Each party to this Agreement, respectively, represents and
warrants that neither the execution and delivery of this Agreement, the
consummation of any of the transactions contemplated hereby nor performance of
or compliance with the terms and conditions hereof will (i) result in the
violation of any present legal requirement to which each such party is subject,
the violation of which would have a material adverse effect on the ability of
each such party to perform its obligations under this Agreement or (ii) conflict
with or result in the breach of, or constitute a default under any agreement or
instrument to which each such party is a party or by which it or its properties
are bound (except any such agreement or instrument a breach of which would not
have a material adverse effect on the ability of each such party to perform its
obligations under this Agreement) or result in the creation of any lien, charge,
security interest or encumbrance

                                       21
<PAGE>   22

(except such that may arise in favor of the other party in connection with this
Agreement) upon any of each such party's properties.

              (c) Seller represents and warrants that all permits, approvals,
certificates, licenses and inspections required to be obtained by Seller to
permit performance of Seller's obligations hereunder shall have been obtained by
Financial Closing, and that Seller has no reason to believe that any permits,
approvals, certificates, licenses and inspections that have not been obtained
prior to such date will not be obtained by the dates by which they are required.

       17.6 Headings. The headings of the Articles and Sections in this
Agreement have been inserted for the convenience of reference only and shall in
no way affect the interpretation of any of the terms or provisions hereof.

       17.7 Interpretation. No inference shall be drawn in favor of or against
either party based on participation in the drafting of this Agreement.

       17.8 Entire Agreement. All prior writings, communications, negotiations,
representations and agreements by and between the parties hereto are superseded
by or merged into this Agreement, which is the full and complete expression of
all understandings between Seller and Buyer regarding the object hereof, and
this Agreement may be modified only in a writing signed by both parties.

       17.9 Controlling Law. The validity, construction and performance of this
Agreement shall be determined in accordance with the laws of the State of West
Virginia applicable to agreements made and to be performed in that State.

       17.10 Further Assurances. If either party reasonably determines that any
further instruments and assurances or any other things are necessary or
desirable to carry out the terms of this Agreement, the other party will execute
and deliver all such instruments and assurances and do all such things as the
first party reasonably deems necessary or desirable to carry out the terms of
this Agreement.

       17.11 Conditions Precedent.

              (a) Seller shall deliver to Buyer a certificate, signed by the
appropriate authorized official of Seller, dated as of the date of execution of
this Agreement, as to the incumbency of the persons executing and delivering
this Agreement.

              (b) Seller shall deliver to Buyer a copy, dated as of a recent
date, certified by the relevant Secretary of State, of the Certificate of
Incorporation of Seller.

              (c) Seller shall deliver to Buyer a certificate, dated as of a
recent date, issued by the relevant Secretary of State, as to the good standing
of Seller.

                                       22
<PAGE>   23

              (d) Seller shall deliver to Buyer a resolution of Seller,
certified by an authorized official of Seller as being in full force and effect
on the date of execution of this Agreement, or other evidence satisfactory to
Buyer, that the execution, delivery and performance of the Agreement and any
instrument or agreement relating to such execution, delivery and performance has
been duly authorized by Seller.

              (e) Seller shall deliver to Buyer a copy, certified by the
Secretary or an assistant secretary of Seller, of Seller's bylaws.

              (f) Seller shall deliver to Buyer an opinion, dated the date of
execution of this Agreement, of counsel to Seller in form and substance
satisfactory to Buyer.

       17.12 Covenants.

              (a) Not later than Financial Closing, Seller shall execute and
deliver a consent and agreement to the assignment of Buyer's right in this
Agreement to the Project Lender and Monongahela Power Company, for the purpose
of securing their security interests in the Facility, in substantially the same
form as Exhibit D hereto.

              (b) On the date of Financial Closing, Seller shall deliver to
Buyer a certificate, dated as of such date, signed by an authorized official of
Seller, stating that each representation and warranty made in Section 17.5 of
this Agreement is true and correct as though made on and as of such date, and
that on such date, there shall exist no default hereunder or breach of any term
herein.

              (c) On the date of Financial Closing, Seller shall deliver to
Buyer an opinion, dated the date of Financial Closing and addressed to Project
Lender, of counsel to Seller in substantially the same form as Exhibit E hereto.

              (d) In connection with its deliveries of coal to the Delivery
Point, Seller shall not release, emit or discharge into the environment any
hazardous substances in excess of permitted concentrations, standards or
limitations under any hazardous substance laws or governmental approvals,
whether Federal, state or local.

                                       23
<PAGE>   24

       IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed in duplicate originals by their duly authorized officers as of the date
hereinabove set out.

[SEAL]

ATTEST:                               ANKER ENERGY CORPORATION

                                      By:      /s/ Terrence J. Jackson
                                          ---------------------------------

                                      Its:           Vice President
                                          ---------------------------------

ATTEST:                               MORGANTOWN ENERGY ASSOCIATES, a
                                      West Virginia general partnership

-----------------------                    By: MidAtlantic Energy Co., a West
                                           Virginia corporation, general partner

                                           By:    /s/ Illegible
                                               ---------------------------------

                                           Its:
                                                --------------------------------<PAGE>   1
                                                                   Exhibit 10.1

OMNIBUS AGREEMENT entered into as of the 1st day of January, 2000

BY AND AMONG:               ORBITAL SCIENCES CORPORATION, a corporation
                            governed by the laws of Delaware ("ORBITAL");

AND:                        ORBITAL COMMUNICATIONS CORPORATION, a corporation
                            governed by the laws of Delaware ("OCC") owned
                            98.65% by Orbital;

AND:                        TELEGLOBE INC., a corporation governed by the laws
                            of Canada ("TELEGLOBE");

AND:                        TELEGLOBE MOBILE PARTNERS, a Delaware general
                            partnership ("TELEGLOBE MOBILE") indirectly owned
                            100% by Teleglobe;

AND:                        ORBCOMM GLOBAL, L.P., a Delaware limited partnership
                            ("ORBCOMM") owned by OCC and Teleglobe Mobile;

                            (OCC and Teleglobe Mobile are collectively referred
                            to herein as the "PARTNERS", and Orbital, Teleglobe,
                            the Partners, and ORBCOMM are collectively referred
                            to herein as the "PARTIES")

ORBCOMM

WHEREAS ORBCOMM was organized by the filing on June 30, 1993 of a Certificate of
Limited Partnership with the Secretary of State of the State of Delaware;

WHEREAS the Partners, Orbital, and Teleglobe have executed a Restated Master
Agreement dated as of September 12, 1995, as amended as of February 5, 1997 (the
"MASTER AGREEMENT");

WHEREAS the Partners have executed, both as general and limited partners, a
Restated Agreement of Limited Partnership of ORBCOMM Global, L.P. dated as of
September 12, 1995, as amended as of December 2, 1996 (the "PARTNERSHIP
AGREEMENT");

<PAGE>   2

MARKETING PARTNERSHIPS

WHEREAS each of ORBCOMM USA, L.P. ("ORBCOMM USA") and ORBCOMM International
Partners, L.P. ("ORBCOMM INTERNATIONAL") was organized by the filing on June 30,
1993 of a Certificate of Limited Partnership with the Secretary of State of the
State of Delaware;

WHEREAS ORBCOMM and OCC have executed, both as general and limited partners, a
Restated Agreement of Limited Partnership of ORBCOMM USA, L.P. dated as of
September 12, 1995 (the "USA PARTNERSHIP AGREEMENT"), and ORBCOMM and Teleglobe
Mobile have executed, both as general and limited partners, a Restated Agreement
of Limited Partnership of ORBCOMM International Partners, L.P. dated as of
September 12, 1995 (the "INTERNATIONAL PARTNERSHIP AGREEMENT");

WHEREAS OCC and ORBCOMM USA have executed a Restated System Charge Agreement
dated as of September 12, 1995 (the "USA SYSTEM CHARGE AGREEMENT"), and
Teleglobe Mobile, ORBCOMM and ORBCOMM International have executed a Restated
International System Charge Agreement dated as of September 12, 1995 (the
"INTERNATIONAL SYSTEM CHARGE AGREEMENT") (the USA System Charge Agreement and
the International System Charge Agreement are collectively referred to herein as
the "SYSTEM CHARGE Agreements");

OTHER ENTITIES

WHEREAS Orbital was engaged in, and holds title to assets relating to, the
business of, among other things, developing, designing, manufacturing, marketing
and selling to commercial customers automated tracking and cargo status data
systems of unpowered mobile assets such as truck trailers, railcars and
containers (the "GEMTRAK BUSINESS");

WHEREAS Teleglobe owns 3,600 Class A voting shares in the share capital of
ORBCOMM Canada Inc., a Canadian corporation ("ORBCOMM CANADA") representing
ninety-two point five percent (92.5%) of the issued and outstanding voting
shares in the share capital of ORBCOMM Canada;

OTHER AGREEMENTS AND LICENSES

WHEREAS ORBCOMM and Orbital have executed an ORBCOMM System Procurement
Agreement dated as of September 12, 1995, as amended (the "1995 PROCUREMENT
AGREEMENT") and an ORBCOMM Procurement Agreement dated as of February 1, 1999,
as amended (the "1999 PROCUREMENT AGREEMENT") (the 1995 Procurement Agreement
and the 1999 Procurement Agreement are collectively referred to herein as the
"PROCUREMENT AGREEMENTS");

WHEREAS the Federal Communications Commission (the "FCC") granted various
licenses to OCC for the construction, launch and operation of a total of 48
low-earth orbit satellites to

                                       2
<PAGE>   3

provide two-way data and messaging communications and position determination
services, and for the operation of four gateway Earth stations and the
deployment of up to 200,000 subscriber units in the continental United States
(the "FCC LICENSES");

WHEREAS ORBCOMM and Orbital have executed an Amended and Restated Administrative
Services Agreement dated as of January 1, 1997 (the "ADMINISTRATIVE SERVICES
AGREEMENT");

PURPOSE

WHEREAS, the Parties wish to amend certain agreements with respect to ORBCOMM
and conclude certain other transactions described herein;

NOW, THEREFORE, IN CONSIDERATION OF THE FOREGOING AND THE RESPECTIVE
REPRESENTATIONS, WARRANTIES, COVENANTS AND AGREEMENTS HEREIN CONTAINED AND OTHER
GOOD AND VALUABLE CONSIDERATION, AND INTENDING TO BE LEGALLY BOUND HEREBY, THE
PARTIES AGREE AS FOLLOWS:

                                    ARTICLE 1

                                 INTERPRETATION

1.1    DEFINITIONS. In this Agreement unless specifically defined otherwise or
       the context otherwise requires, the following terms shall have the
       following meanings, and the terms defined elsewhere herein shall have the
       meanings there defined:

       (a)    "AGREEMENT" means this Omnibus Agreement and all amendments and
              supplements hereto and the terms "herein", "hereof", "hereto",
              "hereunder", and like terms refer to this Agreement.

       (b)    "BETTER OFFER" has the meaning ascribed thereto in Article 5.1
              hereof.

       (c)    "BUSINESS COMBINATION" has the meaning ascribed thereto in Article
              5.1(ii) hereof.

       (d)    "BUSINESS DAY" means any day excluding Saturday, Sunday and any
              other day which in Washington, D.C. or Montreal, Quebec is a legal
              holiday or a day on which financial institutions are authorized by
              law or by local proclamation to close.

       (e)    "CHANGE OF CONTROL" has the meaning ascribed thereto in Article
              5.1 hereof.

                                       3
<PAGE>   4

       (f)    "CLOSING" means completion of the transactions described in
              Article 9 hereof, to take place at the offices of ORBCOMM.

       (g)    "CLOSING DATE" means the date the Partners may agree upon as the
              time at which the Closing shall take place, which shall be a date
              no later than February 25, 2000.

       (h)    "COMMUNICATIONS ACT" means the Communications Act of 1934, as
              amended, and the rules and regulations promulgated thereunder.

       (i)    "CONTINUING DIRECTORS" has the meaning ascribed thereto in Article
              5.1 hereof.

       (j)    "CONVERSION NOTICE OF EXERCISE" has the meaning ascribed thereto
              in Article 3.7 hereof.

       (k)    "CONVERSION OPTION" has the meaning ascribed thereto in Article
              3.7 hereof.

       (l)    "DEFINITIVE AGREEMENTS" means this Agreement, the Partnership
              Agreement, the Master Agreement, the Procurement Agreements, the
              ORBCOMM System Construction Agreement dated as of June 30, 1993
              between OCC and ORBCOMM, the Proprietary Information and
              Non-Competition Agreement dated as of June 30, 1993 among the
              Parties, ORBCOMM USA, L.P. and ORBCOMM International Partners,
              L.P., and other agreements entered into pursuant to the terms of
              this Agreement, as such agreements may have been amended or
              restated or may be amended or restated in the future.

       (m)    "DELAYED INVOICE" has the meaning ascribed thereto in Article 3.6
              hereof.

       (n)    "DELAYED NON-INVOICED AMOUNTS" has the meaning ascribed thereto in
              Article 3.6 hereof.

       (o)    "EXISTING NON-INVOICED AMOUNTS" has the meaning ascribed thereto
              in Article 3.1 hereof.

       (p)    "FIRST EXISTING INVOICE" has the meaning ascribed thereto in
              Article 3.2.1 hereof.

       (q)    "GEMTRAK FINANCIAL STATEMENT" has the meaning ascribed thereto in
              Article 10.1.8 hereof.

       (r)    "GEMTRAK PURCHASE PRICE" has the meaning ascribed thereto in
              Article 6.2 hereof.

       (s)    "INDEMNIFIED PARTIES" has the meaning ascribed thereto in Article
              11.2 hereof.

       (t)    "INDEMNIFYING PARTY" has the meaning ascribed thereto in Article
              11.2 hereof.

                                       4
<PAGE>   5

       (u)    "INDENTURE" means the Amended and Restated Indenture dated as of
              February 9, 1999 executed among ORBCOMM, ORBCOMM Global Capital
              Corp., OCC, Teleglobe Mobile, ORBCOMM USA, ORBCOMM International
              and Marine Midland Bank.

       (v)    "MERGER" has the meaning ascribed thereto in Article 8.2 hereof.

       (w)    "ORBCOMM CANADA FINANCIAL STATEMENTS" has the meaning ascribed
              thereto in Article 10.2.7 hereof.

       (x)    "ORBCOMM CANADA PURCHASE PRICE" has the meaning ascribed thereto
              in Article 7.2 hereof.

       (y)    "PARTICIPATION PERCENTAGE" shall have the meaning ascribed thereto
              in the Partnership Agreement, the USA Partnership Agreement or the
              International Partnership Agreement, as applicable.

       (z)    "PARTNERSHIP INTERESTS" shall have the meaning ascribed thereto in
              the Partnership Agreement, the USA Partnership Agreement or the
              International Partnership Agreement, as applicable.

       (aa)   "PENDING INVOICE" has the meaning ascribed thereto in Article
              3.5.1 hereof.

       (bb)   "PENDING NON-INVOICED AMOUNTS" has the meaning ascribed thereto in
              Article 3.4 hereof.

       (cc)   "PERSON" means any individual, partnership, joint venture,
              corporation, trust, unincorporated organization, association,
              government or department or agency of a government or other
              entity.

       (dd)   "PLAN A INCENTIVE FEES" has the meaning ascribed thereto in
              Article 3.4 hereof.

       (ee)   "SECOND EXISTING INVOICE" has the meaning ascribed thereto in
              Article 3.3.1 hereof.

       (ff)   "STEEPLECHASE LEASE" has the meaning ascribed thereto in Article
              8.5 hereof.

       (gg)   "TELECOM BETTER OFFER" has the meaning ascribed thereto in Article
              5.2 hereof.

       (hh)   "TELEGLOBE PROMISSORY NOTES" means, collectively, the following
              promissory notes:

              (i)    an amended and restated unsecured promissory note dated
                     December 31, 1998 pursuant to which Orbital promised to pay
                     in a single payment and in full to the order of Teleglobe
                     Investment Corporation or assigns on December 31, 1999 the
                     principal amount of $18,612,227 together with (A) interest
                     in the amount of $2,103,087, and (B) interest accrued on
                     the unpaid principal amount from

                                       5
<PAGE>   6

                     December 31, 1998 until such principal amount is paid in
                     full at a rate per annum (computed on the basis of a
                     360-day year comprised of twelve 30-day months) equal to
                     9%; which principal amount and interest equal
                     $22,390,414.43 as of December 31, 1999;

              (ii)   an amended and restated unsecured promissory note dated
                     December 31, 1998 pursuant to which Orbital promised to pay
                     in a single payment and in full to the order of Teleglobe
                     Holding Corporation or assigns on December 31, 1999 the
                     principal amount of $3,298,844 together with (A) interest
                     in the amount of $372,752, and (B) interest accrued on the
                     unpaid principal amount from December 31, 1998 until such
                     principal amount is paid in full at a rate per annum
                     (computed on the basis of a 360-day year comprised of
                     twelve 30-day months) equal to 9%; which principal amount
                     and interest equal $3,968,491.96 as of December 31, 1999;
                     and

              (iii)  an amended and restated unsecured promissory note dated
                     August 17, 1999 pursuant to which Orbital promised to pay
                     in a single payment and in full to the order of Teleglobe
                     Investment Corp. or assigns on December 31, 1999 the
                     principal amount of $6,506,401 together with interest
                     accrued on the unpaid principal amount from August 17, 1999
                     until such principal amount is paid in full at a rate per
                     annum (computed on the basis of a 360-day year comprised of
                     twelve 30-day months) equal to 9%; which principal amount
                     and interest equal $6,722,738.83 as of December 31, 1999.

1.2    EXTENDED MEANINGS. Words importing the singular number include the plural
       and vice versa and words importing the masculine gender include the
       feminine and neuter genders and vice versa.

1.3    INTERPRETATION NOT AFFECTED BY HEADINGS. The division of this Agreement
       into articles and sections and insertion of headings is for convenience
       and reference only and shall not affect the construction or
       interpretation of this Agreement.

1.4    APPLICABLE LAW. This Agreement shall be deemed to have been made in and
       shall be interpreted in accordance with and be governed by the laws of
       the State of Delaware.

1.5    FUNDS. All dollar amounts referred to in this Agreement are in lawful
       currency of the United States of America.

1.6    SEVERABILITY. If any provision of this Agreement shall be held invalid,
       illegal or unenforceable in any jurisdiction, such invalidity, illegality
       or unenforceability shall attach only to such provision in such
       jurisdiction and shall not in any manner affect or render invalid,
       illegal or unenforceable such provision in any other jurisdiction or any
       other provision of this Agreement in any jurisdiction. Upon such
       determination that any provision is invalid, illegal or unenforceable,
       the Parties shall negotiate in good faith to modify this Agreement so as
       to effect the original intent of the Parties as closely as possible

                                       6
<PAGE>   7

       in an acceptable manner in order that the transactions contemplated
       hereby are consummated as originally contemplated to the greatest extent
       possible. Any provision of this Agreement held invalid, illegal or
       unenforceable only in part, degree or certain jurisdictions will remain
       in full force and effect to the extent not held invalid, illegal or
       unenforceable. To the extent permitted by applicable law, each Party
       waives any provision of law that renders any provision of this Agreement
       invalid, illegal or unenforceable in any respect.

1.7    NON-BUSINESS DAY. In the event that any action to be taken hereunder
       falls on a day which is not a Business Day, then such action shall be
       taken on the next succeeding Business Day.

1.8    PREAMBLE. The preamble forms an integral part of this Agreement.

                                    ARTICLE 2

                     AMENDMENTS TO THE PARTNERSHIP AGREEMENT

       The Parties agree that the Partnership Agreement shall be amended and
restated effective as of the date hereof, to reflect the following:

2.1    OCC AS LIMITED PARTNER. From the date hereof, OCC shall no longer be a
       General Partner (as defined in the Partnership Agreement) and shall
       become solely a Limited Partner (as defined in the Partnership
       Agreement). Accordingly, any and all references in the Partnership
       Agreement to "the General Partners", "any General Partners", "any General
       Partner", "each of the General Partners" or "each General Partner" shall
       be deleted and replaced by "the General Partner".

2.2    PARTNERSHIP AGREEMENT. The first four paragraphs of the Partnership
       Agreement are hereby deleted in their entirety and replaced by the
       following:

              "THIS AMENDED AND RESTATED AGREEMENT OF LIMITED PARTNERSHIP (the
              "Agreement") of ORBCOMM GLOBAL, L.P. (the "Partnership") is made
              and entered into as of January 1, 2000 by and between TELEGLOBE
              MOBILE PARTNERS, a Delaware general partnership ("Teleglobe
              Mobile"), as general partner (the "General Partner"), and ORBITAL
              COMMUNICATIONS CORPORATION, a Delaware corporation ("OCC"), and
              Teleglobe Mobile as limited partners (the "Limited Partners"). The
              General Partner and the Limited Partners are collectively referred
              to herein as the "Partners". This Agreement amends and restates
              the Restated Agreement of Limited Partnership of ORBCOMM Global,
              L.P. dated September 15, 1995, as amended by Amendment No. 1 to
              Restated Agreement of Limited Partnership of ORBCOMM Global, L.P.
              dated as of December 2, 1996 (the "1995 Agreement") and by the
              Omnibus Agreement dated as of January 1, 2000 entered into among
              the Partners, Orbital

                                       7
<PAGE>   8

              Sciences Corporation, a Delaware corporation ("Orbital"), and
              Teleglobe Inc., a Canadian corporation ("Teleglobe"), and the
              Partnership (the "Omnibus Agreement").

              WHEREAS, the Partnership was organized, in accordance with the
              provisions of the Delaware Act (as hereinafter defined), by the
              filing of a Certificate of Limited Partnership with the Secretary
              of State of the State of Delaware (the "Certificate") pursuant to
              Section 17-201 of the Delaware Act;

              WHEREAS, upon the filing of the Certificate, the Partners entered
              into an Agreement of Limited Partnership dated as of June 30, 1993
              (the "Original Agreement") and the Partnership entered into
              agreements with OCC, Orbital and Teleglobe for the development,
              construction, operation and marketing of the ORBCOMM System (as
              hereinafter defined); and

              WHEREAS, pursuant to the terms of the Omnibus Agreement, the
              Partners revised the terms of the 1995 Agreement setting forth
              their agreements with respect to the conduct of the business of
              the Partnership and each of their rights and obligations as
              Partners."

2.3    OCC. All references to "ORBCOMM" in the Partnership Agreement (unless
       followed immediately by "Global" "USA", "International" or "System") are
       hereby deleted and replaced by "OCC".

2.4    SECTION 1.4. The first sentence of Section 1.4 of the Partnership
       Agreement is hereby deleted and replaced by the following:

              "The location of the principal office of the Partnership shall be
              2455 Horse Pen Road, Herndon, Virginia 20171 or at such other
              location as may be selected from time to time by the General
              Partner, subject to Article 8.5 of the Omnibus Agreement."

2.5    SECTION 2.3A. A new Section 2.3A is hereby added to the Partnership
       Agreement and shall read as follows:

              "2.3A. Business Day. "Business Day" means any day excluding
              Saturday, Sunday and any other day which in Washington, D.C. or
              Montreal, Quebec is a legal holiday or a day on which financial
              institutions are authorized by law or by local proclamation to
              close."

2.6    SECTION 2.5. Section 2.5 of the Partnership Agreement is hereby deleted
       in its entirety.

2.7    SECTION 2.8. Section 2.8 of the Partnership Agreement is hereby deleted
       in its entirety.

2.8    SECTION 2.9. Section 2.9 of the Partnership Agreement is hereby deleted
       in its entirety.

                                       8
<PAGE>   9

2.9    SECTION 2.9A. A new Section 2.9A is hereby added to the Partnership
       Agreement and shall read as follows:

              "2.9A. Definitive Agreements. "Definitive Agreements" means this
              Agreement, the Omnibus Agreement, the Master Agreement, the
              ORBCOMM System Procurement Agreement dated as of September 12,
              1995 entered into between the Partnership and Orbital, the ORBCOMM
              Procurement Agreement dated as of February 1, 1999 entered into
              between the Partnership and Orbital, the ORBCOMM System
              Construction Agreement, the Proprietary Information and
              Non-Competition Agreement, and other agreements entered into
              pursuant to the terms of the Omnibus Agreement, as such agreements
              may have been amended or restated or may be amended or restated in
              the future."

2.10   SECTION 2.15. Section 2.15 of the Partnership Agreement is hereby deleted
       in its entirety.

2.11   SECTION 2.17. Section 2.17 of the Partnership Agreement is hereby deleted
       in its entirety.

2.12   SECTION 2.20. Section 2.20 of the Partnership Agreement is hereby deleted
       in its entirety.

2.13   SECTION 2.20A. A new Section 2.20A is hereby added to the Partnership
       Agreement and shall read as follows:

              "2.20A. Omnibus Agreement. "Omnibus Agreement" shall have the
              meaning ascribed to such term in the recitals hereto."

2.14   SECTION 2.28. Section 2.28 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

              "2.28. Restatement Date. "Restatement Date" means January 1,
              2000."

2.15   SECTION 2.30. Section 2.30 of the Partnership Agreement is hereby deleted
       in its entirety.

2.16   SECTION 2.35. Section 2.35 of the Partnership Agreement is hereby deleted
       in its entirety.

2.17   SECTION 3.1. Section 3.1 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

              "3.1. Partnership Interests. The Partnership Interests shall be
              expressed in terms of the Partners' Participation Percentages.
              Teleglobe Mobile's Participation Percentage shall be sixty-four
              point twenty-six percent (64.26%) and OCC's Participation
              Percentage shall be thirty-five point seventy-four percent
              (35.74%) as of the Restatement Date after giving effect to the
              contribution described in Subsection 3.2.2 of the Omnibus
              Agreement, subject to adjustments thereafter pursuant to Section
              3.7 hereof (such further adjustments to include, without

                                       9
<PAGE>   10

              limitation, the adjustment resulting from the contribution
              described in Subsection 3.5.2 of the Omnibus Agreement). The
              Partners shall be entitled to receive the distributions set forth
              in Sections 4 and 10."

2.18   SECTION 3.2. Section 3.2 of the Partnership Agreement is hereby deleted
       in its entirety.

2.19   SECTION 3.3. Section 3.3 of the Partnership Agreement is hereby deleted
       in its entirety.

2.20   SECTION 3.5. Section 3.5 of the Partnership Agreement is hereby deleted
       in its entirety.

2.21   SECTION 3.6. Section 3.6 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

              "3.6. Loans. (a) Optional Loans. The General Partner shall have
              the right to make a loan of cash to the Partnership at any time on
              such terms as the General Partner may determine; provided,
              however, that in no event shall any such optional loan be secured
              by Partnership assets, bear interest or original issue discount or
              be with recourse to any Partner.

              (b) Stock Option Plan Loans. To the extent (i) the Partnership has
              agreed to reimburse OCC for the costs paid by OCC pursuant to
              Section 6.06 of the Orbital Communications Corporation 1992 Stock
              Option Plan (including the payment by OCC of withholding taxes
              with respect to the exercise of stock options) in purchasing stock
              acquired by employees or former employees of the Partnership (the
              "Stock Option Plan Costs"), and (ii) the Partnership is permitted
              to reimburse OCC for the Stock Option Plan Costs under the terms
              of the Indenture, the Partnership shall pay to OCC the Stock
              Option Plan Costs including, without limitation, amounts owed
              under notes payable by OCC to former employees of the
              Partnership."

2.22   SECTION 3.7. Section 3.7 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

              "3.7. Additional Capital Contributions. If the Partnership shall
              require a capital contribution, the Partnership shall so notify
              the Partners and each Partner shall have the opportunity, but not
              the obligation, to contribute in cash or immediately available
              funds an amount equal to such capital contribution multiplied by
              such Partner's Participation Percentage. If either Partner
              declines to make a contribution within five (5) Business Days of
              the date upon which the Partnership notified the Partners of such
              requirement (it being understood that if a Partner has not
              contributed its share at the expiration of such five (5) Business
              Day-period, it will be deemed to have declined to contribute),
              then:

              (a)    The other Partner shall be entitled to contribute the
                     amount so declined to be contributed (in addition to any
                     amount such Partner is entitled to contribute

                                       10
<PAGE>   11

                     pursuant to the preceding sentence) within five (5)
                     Business Days of the date upon which the other Partner
                     declined or was deemed to have declined to contribute its
                     share, and

              (b)    Based on contributions so made, the Partners' Participation
                     Percentages shall be adjusted immediately following the
                     expiration of the five (5) Business Day-period referred to
                     in subsection (a) above as follows:

                     (i)    Teleglobe Mobile's Participation Percentage shall be
                            adjusted so as to equal the percentage equal to the
                            result of the following formula, rounded to the
                            second decimal point:

                                          299.354M + (TMAC X 1.75)
                              ----------------------------------------------
                          $465.841M + [1.75 X (TMAC + OAC)] + (OCONV X $33.082M)

                            Where:

                            M =    million

                            TMAC = the dollar amount expressed in millions
                                   rounded to the third decimal point of all
                                   contributions made by Teleglobe Mobile from
                                   January 1, 2000 to the date of determination
                                   of the Partners' Participation Percentages as
                                   provided in this Section 3.7(b), excluding
                                   the contribution referred to in Subsection
                                   3.2.2 of the Omnibus Agreement.

                            OAC =  the dollar amount expressed in millions
                                   rounded to the third decimal point of all
                                   contributions made by OCC from January 1,
                                   2000 to the date of determination of the
                                   Partners' Participation Percentages as
                                   provided in this Section 3.7(b), excluding
                                   the contribution resulting from the
                                   conversion referred to in Subsection 3.3.3 of
                                   the Omnibus Agreement.

                            OCONV = zero (0) until the conversion referred to in
                                   Subsection 3.3.3 of the Omnibus Agreement is
                                   effected and one (1) thereafter or, if such
                                   conversion is not effected as provided in
                                   such Subsection 3.3.3, then zero (0)
                                   thereafter.

                     (ii)   OCC's Participation Percentage shall be adjusted so
                            as to equal one hundred per cent (100%) minus
                            Teleglobe Mobile's Participation Percentage (so
                            adjusted)."

2.23   SECTION 4.1. Section 4.1 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

                                       11
<PAGE>   12

              "4.1. Distributions. Subject to Sections 4.2, 4.3 and 10.3, the
              amount and timing of distributions by the Partnership, either in
              cash or property, shall be determined in the discretion of the
              General Partner, provided, however, subject to Sections 4.4 and
              10.3, that all distributions (including, without limitation, those
              made pursuant to Section 4.2) shall be made to the Partners pro
              rata in accordance with their respective Participation Percentages
              as of the date of distribution and that if the General Partner
              determines to effect a distribution both in cash and property,
              equal proportions of such cash and property shall be distributed
              to the Partners pro rata in accordance with their respective
              Participation Percentages as of the date of distribution. The
              Partners confirm that no distributions under this Section 4.1
              occurred prior to January 1, 2000."

2.24   SECTION 4.3. Section 4.3 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

              "4.3. Nature of Distributions. The General Partner may determine
              to make a distribution in kind or property to the Partners, but
              such property shall be distributed in such a fashion as to ensure
              that the fair value thereof is distributed and allocated in
              accordance with Sections 4, 5 and 10 hereof. For purposes of (a)
              determining amounts to be distributed to Partners under Section
              4.1, (b) determining Net Income and Net Loss under Section 5, (c)
              making adjustments to Capital Accounts under Section 5, and (d)
              allocations under Section 5, any property to be distributed in
              kind shall have the fair value assigned to such property by the
              General Partner, subject to the approval of OCC which shall not be
              unreasonably withheld or delayed, provided, however, that such
              approval shall not be required (a) if at the time such fair value
              is determined OCC's Participation Percentage is below 31.67%; or
              (b) if such fair value is determined by a major investment banking
              firm selected by the Partnership which shall not have rendered
              financial advisory services to the Partnership, Teleglobe or
              Orbital during the preceding year."

2.25   SECTION 5.1(d). Subsection (d) of Section 5.1 of the Partnership
       Agreement is hereby deleted in its entirety and replaced by the
       following:

              "(d) Adjustments to Carrying Values and Capital Accounts. In
              accordance with Treasury Regulations Section 1.704-1(b)(2)(iv)(f),
              in connection with either (i) the contribution of money or other
              property (other than a de minimis amount) to the Partnership by a
              new or existing Partner in consideration for an interest in the
              Partnership or (ii) a distribution of money or other property
              (other than a de minimis amount) by the Partnership to a retiring
              or continuing Partner as consideration for an interest in the
              Partnership, the Capital Accounts of all Partners and the Carrying
              Values of all Partnership properties may be, as determined by the
              General Partner, adjusted (consistent with the provisions hereof)
              upwards or downwards to reflect any Unrealized Gain or Unrealized
              Loss attributable to each Partnership property, as if such
              Unrealized Gain or Unrealized Loss had been

                                       12
<PAGE>   13

              recognized upon an actual sale of each such property at such time
              and had been allocated to the Partners pursuant to Section 5.2.
              For purposes of determining such Unrealized Gain or Unrealized
              Loss, the fair value of Partnership assets shall be determined by
              the General Partner using such reasonable methods of valuation as
              it in its sole discretion deems appropriate, subject to the
              approval of OCC which shall not be unreasonably withheld or
              delayed, provided, however, that such approval shall not be
              required (i) once OCC's Participation Percentage falls below 15%;
              or (ii) if such fair value is determined by a major investment
              banking firm selected by the Partnership which shall not have
              rendered financial advisory services to the Partnership, Teleglobe
              or Orbital during the preceding year.

              Without limiting the generality of the foregoing and
              notwithstanding any other provision of this Agreement, the
              proportion that the dollar amount of the Capital Account of a
              Partner bears to the dollar amount of the Capital Account of the
              other Partner shall at all times be equivalent to the proportion
              that the Participation Percentage of such Partner bears to the
              Participation Percentage of such other Partner. Accordingly, at
              any time a discrepancy arises between the respective Participation
              Percentages of the Partners, the General Partner will immediately
              adjust upwards and/or downwards the respective Capital Accounts of
              the Partners as may be required to reflect the provisions of the
              preceding sentence."

2.26   SECTION 5.1(f). Subsection (f) of Section 5.1 of the Partnership
       Agreement is hereby deleted in its entirety.

2.27   SECTION 6.1. The first paragraph of Section 6.1 of the Partnership
       Agreement is hereby deleted in its entirety and replaced by the
       following:

              "Authority of the General Partner. Except to the extent required
              by law or specific provisions of this Agreement, the management of
              the Partnership and all Partnership affairs shall be the exclusive
              responsibility of the General Partner. Without limiting the
              generality of the foregoing, subject to Sections 6.2, 6.2A, 6.2B
              and 6.3 hereof, the General Partner is authorized on behalf of the
              Partnership, without the consent of any other Partner, to:"

2.28   SECTION 6.1. The last paragraph of Section 6.1 of the Partnership
       Agreement is hereby deleted in its entirety and replaced by the
       following:

              "By executing this Agreement, each Partner shall be deemed to have
              consented to any exercise by the General Partner of any of the
              foregoing powers."

2.29   SECTION 6.2. Section 6.2 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

              "6.2. OCC Approval. The approval of OCC shall be required to:

                                       13
<PAGE>   14

              (a)    enter into any transaction (excluding the Definitive
                     Agreements) with an Affiliate of the General Partner;

              (b)    make on behalf of the Partnership an assignment for the
                     benefit of creditors, decide on behalf of the Partnership
                     to subject the Partnership to any proceedings under any
                     bankruptcy or insolvency law, decide to avail the
                     Partnership of the benefit of any other legislation for the
                     benefit of debtors, or take steps to wind up or terminate
                     the Partnership existence; and

              (c)    amend this Section 6.2.

              This Section 6.2 shall no longer apply and it shall be deemed
              deleted once OCC's Participation Percentage falls below 15%."

       Notwithstanding anything to the contrary, this Article 2.29 will not
       apply to any transaction effected pursuant to this Agreement including,
       without limitation, the transactions referred to in Articles 5.2 and 7
       hereof.

2.30   SECTION 6.2A. A new Section 6.2A is hereby added immediately following
       Section 6.2 of the Partnership Agreement:

              "6.2A. OCC Approval. The approval of OCC shall be required to
              amend, in a manner detrimental to OCC, the provisions of Sections
              3, 4, 5, 6.2A and 10 of this Agreement, it being understood that
              any amendment to any such Sections upon the admission of another
              Limited Partner that is not an Affiliate of the General Partner
              shall not be deemed to be detrimental to OCC if all Limited
              Partners are treated substantially equally in connection with such
              amendment."

2.31   SECTION 6.2B. A new Section 6.2B is hereby added immediately following
       Section 6.2A of the Partnership Agreement:

              "6.2B. OCC Approval. Subject to the terms hereof, the approval of
              OCC shall be required to:

              (a)    transfer all or substantially all the assets of the
                     Partnership or contract to do so;

              (b)    merge or consolidate the Partnership with any other Person;
                     provided, however, that this subsection (b) shall not be
                     applicable in the event such merger or consolidation is
                     deemed fair from a financial point of view to the
                     Partnership in the written opinion of a major investment
                     banking firm selected by the Partnership which shall not
                     have rendered financial advisory services to the
                     Partnership, Teleglobe or Orbital during the preceding
                     year;

                                       14
<PAGE>   15

              (c)    permit the entry by the Partnership into any additional
                     lines of business other than those described in Section
                     1.3, as contemplated in the Omnibus Agreement or directly
                     related thereto;

              (d)    select or remove the independent certified public
                     accountant for the Partnership pursuant to Section 8.4 or
                     adopt, or modify in any material respect, any significant
                     accounting policy or tax policy;

              (e)    determine the value of the Partnership for purposes of
                     Article X of the Master Agreement; and

              (f)    amend any provision of this Agreement; provided, however,
                     that notwithstanding any other provision of this Agreement,
                     no Partner shall delay, frustrate or otherwise interfere
                     with in any way the raising of debt or equity financing by
                     the Partnership from any Person not currently admitted to
                     the Partnership which financing has been initiated or
                     approved by the General Partner (it being understood that
                     the simultaneous raising of debt or equity financing by OCC
                     or Teleglobe Mobile shall be deemed for the purposes hereof
                     to interfere with the raising of debt or equity financing
                     by the Partnership); provided that in the case of any such
                     equity financing, the consideration expected to be received
                     by the Partnership from such financing shall be fair to the
                     Partnership as determined by the General Partner; and
                     provided further that in the case of any such equity
                     financing (executed in one transaction or a series of
                     transactions) which is intended to result in the admission
                     to the Partnership of a Person or Persons who following
                     such financing would hold a Participation Percentage or
                     Participation Percentages equal to or greater than
                     twenty-five percent (25%), the consideration expected to be
                     received by the Partnership from such financing shall be
                     fair to the Partnership, in the written opinion of a major
                     investment banking firm selected by the Partnership which
                     shall not have rendered financial advisory services to the
                     Partnership, Teleglobe or Orbital during the preceding
                     year.

              This Section 6.2B shall no longer apply and it shall be deemed
              deleted once OCC's Participation Percentage falls below 31.67%;
              provided, however, that should OCC's Participation Percentage
              return to 31.67% or higher after having fallen below 31.67% solely
              as a result of the conversion referred to in Subsection 3.3.3 of
              the Omnibus Agreement, then this Section 6.2B will apply again
              until OCC's Participation Percentage thereafter falls below
              31.67%, at which time this Section 6.2B shall no longer apply and
              it shall be deemed deleted."

2.32   SECTION 6.3. Section 6.3 of the Partnership Agreement is hereby deleted
       in its entirety.

2.33   SECTION 6.4. Section 6.4 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

                                       15
<PAGE>   16

              "6.4. Meetings. Meetings of the Partners may be called by the
              General Partner and shall be held at the principal offices of the
              Partnership or at such other location as shall be reasonably
              determined by the General Partner. Except as otherwise specified
              in Section 8.5 hereof, the General Partner shall have no
              obligation to call a meeting of the Partners at any time.
              Notwithstanding any provision of applicable law, not less than
              forty-eight (48) hours prior written notice of the time, place and
              purpose of each meeting of the Partners shall be provided to each
              Partner, provided that any Partner may waive compliance with such
              notice requirement. Any meeting may be adjourned from time to time
              by the General Partner, and the meeting may be held as adjourned
              without further notice. Any one or more Partners may participate
              in any meeting by means of conference telephone, video or similar
              communications equipment allowing all persons participating in the
              meeting to hear each other at the same time. Participation by
              Partners in a meeting held by means of a conference telephone,
              video or similar communications equipment shall constitute
              presence in person at a meeting. Any action required or permitted
              to be taken with the approval of one or more Partners may be taken
              without a meeting upon the written consent of such Partners, which
              written consent shall be filed with the records of the meetings of
              the Partners."

2.34   SECTION 6.5. Section 6.5 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

              "6.5. Representation at Meetings; Reimbursement. The General
              Partner shall be represented at meetings of the Partners by up to
              three authorized officers or other authorized agents, it being the
              expectation of the General Partner that it will select three
              representatives who will use reasonable efforts to attend each
              meeting of the Partners. At each meeting of the Partners, one
              representative of the General Partner shall be entitled to vote
              such Partner's Participation Percentage. The General Partner shall
              be entitled to reimbursement of the reasonable out-of-pocket
              expenses incurred by it or its representatives in attending
              meetings of the Partners. No amount so paid to any such member
              shall be deemed to be a distribution of Partnership assets for
              purposes of this Agreement or the Delaware Act. Except for the
              reimbursement of expenses as provided in this Section 6.5, the
              General Partner or representatives thereof shall not receive any
              compensation for its, his or her services as such.

              In addition, so long as OCC's Participation Percentage is not less
              than fifteen percent (15%), then at each meeting of the Partners,
              two representatives of OCC as well as the Chief Executive Officer
              of ORBCOMM shall be entitled to be present as observers and OCC
              shall be entitled to reimbursement of expenses to the extent set
              forth for the General Partner herein with respect to its two
              representatives, except for travel expenses."

2.35   SECTION 6.8. Section 6.8 of the Partnership Agreement is hereby deleted
       in its entirety.

                                       16
<PAGE>   17

2.36   SECTION 6.9. Section 6.9 of the Partnership Agreement is hereby deleted
       in its entirety.

2.37   SECTION 8.3. The phrase "using ORBCOMM financial formats, which formats
       shall be previously approved by Teleglobe Mobile" found in Subsection (b)
       of Section 8.3 of the Partnership Agreement is hereby deleted in its
       entirety and replaced by the phrase "using Teleglobe Mobile financial
       formats, which formats shall be approved by OCC, such approval not to be
       unreasonably withheld or delayed."

2.38   SECTION 8.3. The last sentence of Subsection (b) of Section 8.3 of the
       Partnership Agreement is hereby deleted in its entirety.

2.39   SECTION 8.3. The first sentence of Subsection (c) of Section 8.3 of the
       Partnership Agreement is hereby deleted in its entirety and replaced by
       the following:

              "Teleglobe Mobile shall be the Tax Matters Partner of the
              Partnership."

       Orbital and OCC agree to provide all necessary assistance to Teleglobe
       Mobile and ORBCOMM to provide for an orderly transition of the status of
       the Tax Matter Partner (as defined in the Partnership Agreement) from OCC
       to Teleglobe Mobile, including, without limitation, the preparation of
       tax filings for the year ended December 31, 1999, the transfer of all
       previously filed tax filings and back-up documentation as well as access
       to the necessary Orbital personnel. Orbital shall be reimbursed promptly
       upon invoice for reasonable costs and expenses associated with such
       assistance.

2.40   SECTION 8.4. The words "KPMG Peat Marwick" found in Section 8.4 of the
       Partnership Agreement are hereby deleted in their entirety and replaced
       by "Arthur Andersen".

2.41   SECTION 8.5. Section 8.5 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

              "8.5. Review Policies. So long as OCC's Participation Percentage
              is not less than fifteen percent (15%), the financial performance
              and business of the Partnership shall be reviewed at least
              quarterly by the General Partner at a meeting of the Partners."

2.42   SECTION 10.3. Section 10.3 of the Partnership Agreement is hereby deleted
       in its entirety and replaced by the following:

              "Upon the dissolution of the Partnership, the General Partner, or,
              in the case of an Event of Withdrawal of the last remaining
              General Partner, one of the Limited Partners elected by a majority
              vote of the Limited Partners, shall act as liquidator to wind up
              the Partnership. The liquidator shall have full power and
              authority to sell, assign and encumber any or all of the
              Partnership's assets and to wind up and liquidate the affairs of
              the Partnership in an orderly and business-like manner. All
              proceeds from liquidation shall be distributed in the following
              order of priority: (a)

                                       17
<PAGE>   18

              to the payment of the debts and liabilities of the Partnership and
              expenses of liquidation; (b) to the setting up of such reserves as
              the liquidator may reasonably deem necessary for any contingent
              liability of the Partnership; and (c) the balance to the Partners
              pro rata in accordance to their respective Participation
              Percentages."

2.43   SECTION 11.1. The words "Executive Vice President, Corporate Development
       and Corporate Secretary" referred to in Section 11.1 of the Partnership
       Agreement are hereby deleted and replaced by "Vice President, Chief Legal
       Officer and Corporate Secretary."

2.44   FAIR MARKET VALUE. Any and all references to "fair market value" and
       "fair market values" in the Partnership Agreement are hereby deleted and
       replaced by "fair value" and "fair values", respectively.

2.45   AMENDED AND RESTATED PARTNERSHIP AGREEMENT. The Parties agree to execute
       concurrently with the execution of this Agreement the Amended and
       Restated Partnership Agreement attached hereto as Schedule A which gives
       effect to the amendments provided herein.

                                    ARTICLE 3

                             PROCUREMENT AGREEMENTS

3.1    EXISTING NON-INVOICED AMOUNTS. After giving effect to subparagraph (vii)
       of Section 3.1(a) of the 1995 Procurement Agreement, as provided in
       Article 3.9.1 hereof, the Parties confirm that Orbital's invoiceable but
       non-invoiced amounts to ORBCOMM under the Procurement Agreements as of
       July 1999 are equal to $66,163,290.44 (the "EXISTING NON-INVOICED
       AMOUNTS").

3.2    INVOICING OF EXISTING NON-INVOICED AMOUNTS; TELEGLOBE MOBILE
       CONTRIBUTION. Concurrently with the execution of this Agreement:

       3.2.1  Orbital will send ORBCOMM an invoice in the amount of
              $33,081,645.22, representing half of the amount of the Existing
              Non-Invoiced Amounts (the "FIRST EXISTING INVOICE");

       3.2.2  Teleglobe Mobile will contribute to ORBCOMM an amount equal to the
              First Existing Invoice by way of wire transfer in exchange for
              Partnership Interests of ORBCOMM;

       3.2.3  upon receipt of the contribution specified in Subsection 3.2.2,
              ORBCOMM will pay the First Existing Invoice to Orbital by way of
              wire transfer;

                                       18
<PAGE>   19

       3.2.4  upon receipt of the payment specified in Subsection 3.2.3, Orbital
              will pay all amounts due under the Teleglobe Promissory Notes by
              way of wire transfer as per the terms of the instructions attached
              hereto as Schedule B; and

       3.2.5  the Teleglobe Promissory Notes will be deemed to be paid in full
              and cancelled.

       Completion of the steps referred to in this Article 3.2 hereof will not
       result in an adjustment under Section 3.7 or 5.1(d) of the Partnership
       Agreement, the contribution referred to in Subsection 3.2.2 hereof being
       already reflected in Section 3.1 of the Partnership Agreement.

3.3    ADDITIONAL INVOICING OF EXISTING NON-INVOICED AMOUNTS. Subject to all
       necessary consents from lenders being granted to Orbital at the latest by
       March 31, 2000 (failing which the terms of Subsection 3.6.3 hereof will
       apply) and within three (3) Business Days of such consents being granted
       to Orbital:

       3.3.1  Orbital will send ORBCOMM a second invoice in the amount of
              $33,081,645.22, representing the other half of the amount of the
              Existing Non-Invoiced Amounts not invoiced under the First
              Existing Invoice (the "SECOND EXISTING INVOICE");

       3.3.2  Orbital will assign the Second Existing Invoice to OCC and an
              adjustment shall be made to intercompany accounts consistent with
              past practice;

       3.3.3  OCC will request ORBCOMM to convert the full amount of the Second
              Existing Invoice into a contribution to Partnership Interests of
              ORBCOMM;

       3.3.4  ORBCOMM will accept such request and the Second Existing Invoice
              will be deemed fully paid; and

       3.3.5  the respective Participation Percentages and Capital Accounts of
              the Partners will be immediately adjusted pursuant to the terms of
              Sections 3.7 and 5.1(d) of the Partnership Agreement.

       Orbital hereby undertakes to use all reasonable commercial efforts to
       obtain all of the necessary consents from lenders referred to above as
       soon as possible.

3.4    DETERMINATION OF PENDING NON-INVOICED AMOUNTS; FUTURE INVOICING. After
       giving effect to subparagraph (viii) of Section 3.1(a) of the 1995
       Procurement Agreement as provided in Article 3.9.1 hereof, the Parties
       hereby agree, subject to the following, that the invoiceable but
       non-invoiced amounts owed by ORBCOMM under the Procurement Agreements up
       to December 31, 1999, excluding the Existing Non-Invoiced Amounts, are
       equal to $25,137,209 and are referred to herein as the "PENDING
       NON-INVOICED AMOUNTS". Subject to the following sentence, it is
       understood by the Parties that the Existing Non-Invoiced Amounts and the
       Pending Non-Invoiced Amounts together represent all amounts Orbital is
       entitled to invoice under the Procurement Agreements, the Administrative

                                       19
<PAGE>   20

       Services Agreement and open task orders for the period up to and
       including December 31, 1999. Notwithstanding the preceding sentences, the
       Parties agree that an amount of $1,152,779 plus the applicable interest
       has been included in the Pending Non-Invoiced Amounts as Plane A
       incentive fees payable pursuant to Article 4 of the 1995 Procurement
       Agreement (the "PLANE A INCENTIVE FEES") regardless of the fact that the
       Plane A Incentive Fees have not yet been agreed upon by the Parties. The
       Parties agree to negotiate the Plane A Incentive Fees, if any, in good
       faith at the latest by the Closing Date. At the Closing Date, an upward
       or downward adjustment to the Pending Non-Invoiced Amounts and to the
       amounts provided in Subsections 3.5.1, 3.6.1, 3.6.2 and 3.9.1 hereof will
       be effected to give effect to the final determination of the Plane A
       Incentive Fees. The difference between the amount currently provided for
       in Subsection 3.5.1 and the re-adjusted amount, if any, to be provided
       for in Subsection 3.5.1 will be reimbursed by Orbital to ORBCOMM or paid
       by ORBCOMM to Orbital, as the case may be, at the Closing and the
       Participation Percentages and Capital Accounts of the Partners will be
       adjusted accordingly.

3.5    INVOICING OF PENDING NON-INVOICED AMOUNTS; TELEGLOBE MOBILE CONTRIBUTION.
       Concurrently with the execution of this Agreement:

       3.5.1  Orbital will send ORBCOMM an invoice in the amount of $8,379,070
              (i.e. 33 1/3% of the Pending Non-Invoiced Amounts) (the "PENDING
              INVOICE"). The balance of the Pending Non-Invoiced Amounts shall
              be paid in accordance with the provisions of Subsections 3.6.1 and
              3.6.2 hereof;

       3.5.2  upon receipt of the invoice specified in Subsection 3.5.1,
              Teleglobe Mobile will contribute to ORBCOMM an amount equal to the
              amount of the Pending Invoice by way of wire transfer in exchange
              for Partnership Interests in ORBCOMM;

       3.5.3  upon receipt of the contribution specified in Subsection 3.5.2,
              ORBCOMM will pay the Pending Invoice to Orbital by way of wire
              transfer; and

       3.5.4  the respective Participation Percentages and Capital Accounts of
              the Partners will be immediately adjusted pursuant to Sections 3.7
              and 5.1(d) of the Partnership Agreement.

3.6    INVOICING OF OTHER AMOUNTS. Subject to the last paragraph of Article 8.4
       hereof, but notwithstanding any provision of the Procurement Agreements,
       the Parties agree that:

       3.6.1  Orbital will invoice ORBCOMM under the Procurement Agreements an
              additional amount equal to $8,379,070 (i.e. 33 1/3% of the Pending
              Non-Invoiced Amounts) on March 31, 2001 (plus the applicable
              additional amounts payable pursuant to Article 3.11 hereof);

       3.6.2  Orbital will invoice ORBCOMM under the Procurement Agreements an
              additional amount equal to $8,379,069 (i.e. the balance of the
              Pending Non-

                                       20
<PAGE>   21

              Invoiced Amounts) on June 30, 2001 (plus the applicable additional
              amounts payable pursuant to Article 3.11 hereof); and

       3.6.3  in the event the transactions referred to in Article 3.3 hereof
              cannot be completed by March 31, 2000, Orbital will invoice
              ORBCOMM under the Procurement Agreements on March 31, 2001 an
              amount equal to $33,081,645.22, representing the amount referred
              to in Article 3.3.1 hereof, together with interest accrued thereon
              from March 31, 2000 through March 31, 2001 at a rate per annum
              (computed on the basis of a 360-day year comprised of twelve
              30-day months) equal to nine percent (9%).

       The amounts referred to in subsections 3.6.1, 3.6.2 and 3.6.3 hereof are
       collectively referred to herein as the "DELAYED NON-INVOICED AMOUNTS" and
       any invoice with respect to such amounts is referred to herein as a
       "DELAYED INVOICE".

3.7    ORBITAL CONVERSION OPTION. In the event that any Delayed Non-Invoiced
       Amounts are not paid by ORBCOMM within five (5) Business Days of the date
       on which they are invoiced by Orbital pursuant to Article 3.6 hereof,
       then Orbital will have the option (the "CONVERSION OPTION") to convert
       the whole of the unpaid Delayed Non-Invoiced Amounts covered by the
       applicable Delayed Invoice into a contribution to Partnership Interests
       of ORBCOMM. The Conversion Option shall be exercised by Orbital by giving
       ORBCOMM and Teleglobe Mobile notice in writing (the "CONVERSION NOTICE OF
       EXERCISE") of its intention to exercise the Conversion Option with
       respect to any applicable Delayed Invoice within twenty (20) Business
       Days following the due date of such Delayed Invoice, failing which the
       Conversion Option with respect to such Delayed Invoice will be cancelled.
       Orbital shall not have the right to assign the Conversion Option.
       Completion of the exercise of the Conversion Option with respect to any
       applicable Delayed Invoice shall take place at the offices of ORBCOMM at
       11:00 a.m. (local time) on the third (3rd) Business Day following receipt
       by both ORBCOMM and Teleglobe Mobile of the applicable Conversion Notice
       of Exercise and shall proceed as follows:

       3.7.1  Orbital will assign the applicable invoice to OCC and an
              adjustment shall be made to intercompany accounts consistent with
              past practice;

       3.7.2  OCC will request ORBCOMM to convert the full unpaid amount of such
              applicable invoice into a contribution to Partnership Interests of
              ORBCOMM;

       3.7.3  ORBCOMM will accept such request and such applicable invoice shall
              be deemed fully paid; and

       3.7.4  an adjustment to the Participation Percentages and the Capital
              Accounts of each of the Partners pursuant to Sections 3.7 and
              5.1(d) of the Partnership Agreement or any other similar provision
              then in effect dealing with the treatment of additional
              contributions by Partners will be immediately effected.

                                       21
<PAGE>   22

       Notwithstanding any provision in Article 3.6 and 3.7 to the contrary, in
       the event that ORBCOMM fails to pay amounts due and payable to Orbital
       under the Procurement Agreements (other than amounts disputed in good
       faith by ORBCOMM in accordance with the terms of the Procurement
       Agreements), then the Delayed Non-Invoiced Amounts shall become, if such
       failure continues for five (5) Business Days following written notice
       thereof by Orbital to ORBCOMM and Teleglobe Mobile, due and payable and
       Orbital shall have the option to convert the entire Delayed Non-Invoiced
       Amounts (other than amounts disputed in good faith by ORBCOMM in
       accordance with the terms of the Procurement Agreements) into a
       contribution to Partnership Interests of ORBCOMM. If Orbital decides to
       exercise such option to convert, it shall provide written notice of
       exercise to ORBCOMM and Teleglobe Mobile within five (5) Business Days of
       the expiration of the five (5) Business Day-period referred to above and
       the option shall be exercisable by Orbital on the second (2nd) Business
       Day following the sending of such written notice and shall proceed as set
       forth in Articles 3.7.1 to 3.7.4 herein. For the purposes of this
       paragraph, the amendments to be effected pursuant to Article 3.11 will be
       effected as of the date the unpaid amounts are paid by ORBCOMM or, if the
       option to convert is exercised by Orbital, as of the date of conversion.

3.8    ACCESS AND INVESTIGATION. From the date of this Agreement, Orbital will
       afford Teleglobe, ORBCOMM and their representatives full and free access
       to Orbital's personnel, properties, contracts, books and records, and
       other documents and data as Teleglobe and ORBCOMM may reasonably request
       in order to validate Orbital's invoices under the Procurement Agreements.

3.9    AMENDMENTS TO 1995 PROCUREMENT AGREEMENT. The 1995 Procurement Agreement
       shall be amended as follows:

       3.9.1  ARTICLE 3.1(a). Article 3.1(a) of the 1995 Procurement Agreement
              shall be amended to add new subparagraphs (vii) and (viii)
              immediately following subparagraph (vi) that read as follows:

              "(vii)  Price Adjustment Changes From
                      October 1, 1999 to December 31, 1999
                      Outside the General Scope of the Agreement    $1,194,673

              "(viii) Price Adjustment Changes through
                      December 31, 1999 Outside
                      the General Scope of the Agreement            $555,467"

       3.9.2  ARTICLE 3.1(a). Article 3.1(a) of the 1995 Procurement Agreement
              shall be amended to delete the "TOTAL" price of $169,505,816 set
              forth therein and to replace it with the new "TOTAL" price of
              $171,255,956.

       3.9.3  ARTICLE 4.1(b)(i). Article 4.1(b)(i) of the 1995 Procurement
              Agreement shall be deleted in its entirety and replaced with the
              following:

                                       22
<PAGE>   23

              "(i) Orbital shall be entitled to invoice ORBCOMM Global on a
              monthly basis for a maximum of 90% of its costs incurred during
              such month, other than costs associated with Sections 3.1(a)(iv),
              3.1(a)(v), 3.1(a)(vi), 3.1(a)(vii), 3.1(a)(viii), 3.1(c) and
              3.1(d), plus to the extent permitted by Section 4.1(f), such
              portion of the cost in excess of the maximum amount to be invoiced
              to ORBCOMM Global in accordance with such Section 4.1(f) and not
              previously invoiced and paid; provided, however, that Orbital
              shall not be entitled to invoice ORBCOMM Global under Section
              4.1(a) and this Section 4.1(b)(i) in a cumulative total amount
              greater than $126,390,568."

       3.9.4  ARTICLE 4.4(ii). Article 4.4(ii) of the 1995 Procurement Agreement
              is hereby deleted in its entirety.

3.10   AMENDMENTS TO 1999 PROCUREMENT AGREEMENT. ORBCOMM and Orbital hereby
       agree to finalise by the Closing Date the manner by which the Exercised
       Optional Satellite Allocated Costs, the Exercised Optional Satellite
       Allocated Price, the Exercised Optional Satellite Difference Credit, the
       Propulsion Ring Actual Price, and the Propulsion Ring Difference Credit
       (as such terms are defined in the 1999 Procurement Agreement) are to be
       calculated under the 1999 Procurement Agreement, as well as the manner in
       which these amounts are to be paid, and to do so along the lines set
       forth in Schedule C hereto.

3.11   FURTHER AMENDMENTS TO PROCUREMENT AGREEMENTS. The Parties agree to
       execute an amendment to the 1995 Procurement Agreement and/or the 1999
       Procurement Agreement effective as of March 31, 2000 or June 30, 2000, as
       applicable, in a form similar to Article 3.9 hereof or any other
       acceptable form, which will provide for a price adjustment under such
       Procurement Agreements equal to the interest accrued on the Delayed
       Non-Invoiced Amounts from January 1, 2000 until March 31, 2001 for the
       amount referred to in Article 3.6.1 hereof and until June 30, 2001 for
       the amounts referred to in Articles 3.6.2 and 3.6.3 hereof, at a rate per
       annum (computed on the basis of a 360-day year comprised of twelve 30-day
       months) equal to 9%.

3.12   PROCUREMENT AGREEMENT RELATED ITEMS. Orbital will proceed, at the latest
       by the Closing Date, to transfer to ORBCOMM all source codes,
       documentation, and related tools required for ORBCOMM to maintain and
       upgrade as required and on its own the on-board satellite software.

3.13   1995 PROCUREMENT AGREEMENT. The last two sentences of Article 13.2 of the
       1995 Procurement Agreement are hereby deleted in their entirety and
       replaced by the following:

              "To the extent that ORBCOMM Global designs modifications to the
              Background Information, it shall have the right to implement such
              modifications; provided, however, that if ORBCOMM Global decides
              to implement such modifications without the prior written consent
              of Orbital and the Satellites on which such modifications were
              implemented become non-Working Satellites thereafter, the

                                       23
<PAGE>   24

              unpaid portion of the On-orbit Performance Incentive Payment shall
              become payable thirty (30) days after the failure by ORBCOMM
              Global to reasonably demonstrate that such modifications have not
              caused such otherwise Working Satellites to become non-Working
              Satellites. ORBCOMM Global will have up to one hundred and eighty
              (180) days from the date the Working Satellites become non-Working
              Satellites to make the demonstration referred to in the preceding
              sentence."

3.14   1999 PROCUREMENT AGREEMENT. The last two sentences of Article 13.2 of the
       1999 Procurement Agreement are hereby deleted in their entirety and
       replaced by the following:

              "To the extent that ORBCOMM Global designs modifications to the
              Background Information, it shall have the right to implement such
              modifications; provided, however, that if ORBCOMM Global decides
              to implement such modifications without the prior written consent
              of Orbital and the Satellites on which such modifications were
              implemented become non-functional Satellites thereafter, the
              unpaid portion of the Incentive Fee shall become payable thirty
              (30) days after the failure by ORBCOMM Global to reasonably
              demonstrate that such modifications have not caused such otherwise
              functional Satellites to become non-functional Satellites. ORBCOMM
              Global will have up to one hundred and eighty (180) days from the
              date the functional Satellites become non-functional Satellites to
              make the demonstration referred to in the preceding sentence."

3.15   INTERPRETATION. To the extent required, this Article 3 constitutes an
       amendment to the terms of the Procurement Agreements. If the terms of
       this Agreement contradict the terms of the Procurement Agreements, this
       Agreement shall prevail.

                                    ARTICLE 4

                                ACKNOWLEDGEMENTS

4.1    OWNERSHIP OF ORBCOMM. The Parties confirm that, as of the date hereof
       after giving effect to the amendments to the Partnership Agreement
       referred to in Article 2 hereof (including the contribution referred to
       in Subsection 3.2.2 hereof but excluding the contribution referred to in
       Subsection 3.5.2 hereof), the Partners' respective Partnership
       Percentages and Capital Accounts in ORBCOMM are summarized as follows:

<TABLE>
       <S>                                             <C>
       Teleglobe Mobile Participation Percentage:      64.26%
                                                       (as calculated in Schedule D hereof)
       OCC Participation Percentage:                   35.74%
                                                       (as calculated in Schedule D hereof)
</TABLE>

                                       24
<PAGE>   25

4.2    CALCULATION EXAMPLES. Attached as Schedule E hereto are examples of the
       application of the formula provided for in Section 3.7(b) of the
       Partnership Agreement, as amended pursuant to Article 2.21 hereof, the
       first example showing the result of the contribution referred to in
       Subsection 3.5.2 hereof.

4.3    OWNERSHIP OF ORBCOMM USA. The Parties confirm that, as of the date hereof
       immediately before giving effect to the Merger, ORBCOMM's and OCC's
       respective Partnership Interests in ORBCOMM USA are as follows:

       ORBCOMM Participation Percentage:              98%
       OCC Participation Percentage:                  2%

4.4    OWNERSHIP OF ORBCOMM INTERNATIONAL. The Parties confirm that, as of the
       date hereof immediately before giving effect to the Merger, ORBCOMM's and
       Teleglobe Mobile's respective Partnership Interests in ORBCOMM
       International are as follows:

       ORBCOMM Participation Percentage:              98%
       Teleglobe Mobile Participation Percentage:     2%

                                    ARTICLE 5

                                 RIGHT TO MATCH

5.1  ORBITAL. In the event ORBCOMM shall request proposals for the
     construction, integration, test, launch and operation of satellites not
     currently covered or to be covered under the Procurement Agreements, then
     ORBCOMM will grant Orbital an opportunity to bid on all such requests. The
     requests for proposals will not contain any specifications written
     specifically and deliberately to exclude Orbital; provided, however, that
     specifications written to permit ORBCOMM to address what ORBCOMM, in good
     faith, believes are the technical, commercial and other requirements with
     respect to its business will not be deemed to have been written
     specifically and deliberately to exclude Orbital. Upon completion of the
     bidding process, if ORBCOMM determines in its reasonable discretion that
     the terms and conditions (technical, financial and otherwise, taken as a
     whole) of an offer other than the Orbital offer are better than those of
     the Orbital offer (the "BETTER OFFER"), then ORBCOMM will submit the terms
     and conditions of the Better Offer to Orbital and Orbital will have five
     (5) Business Days to match such Better Offer. If Orbital does not respond
     in writing stating that it matches all the terms and conditions of the
     Better Offer within such time constraint, it will have the same effect as
     Orbital refusing to match the Better Offer and ORBCOMM will be free to
     accept the Better Offer. If the Better Offer is matched by Orbital, ORBCOMM
     and Orbital will negotiate in good faith the terms and conditions of a
     procurement agreement to be executed within thirty (30) days. If ORBCOMM
     and Orbital cannot agree on the terms and conditions of

                                       25
<PAGE>   26

        the procurement agreement within such thirty (30) day-period acting
        reasonably, ORBCOMM will be free to negotiate and contract with any
        other party. This Article 5.1 shall no longer apply and be deemed
        deleted upon a Change of Control of Orbital. For the purposes of this
        Article 5.1, a "CHANGE OF CONTROL" shall mean:

       (i)    the acquisition by any Person, or any Persons acting jointly or in
              concert, whether directly or indirectly, of voting securities of
              Orbital which, together with all other voting securities of
              Orbital held by such Persons, constitute, in the aggregate, either
              (a) fifty percent (50%) or more of all outstanding voting
              securities of Orbital, or (b) forty percent (40%) or more of all
              outstanding voting securities of Orbital and is followed within
              twenty-four (24) months of such acquisition by changes of the
              members of the Board of Directors of Orbital as a result of which
              the majority of the Board of Directors of Orbital consists of
              individuals other than Continuing Directors (as defined below);

       (ii)   a merger, consolidation, reorganization or other form of business
              combination (collectively, a "BUSINESS COMBINATION") of Orbital
              with another entity which results in the holders of voting
              securities of that other entity holding, in the aggregate, either
              (a) fifty percent (50%) or more of all outstanding voting
              securities of the entity resulting from the Business Combination,
              or (b) forty percent (40%) or more of all outstanding voting
              securities of the entity resulting from the Business Combination
              and is followed within twenty-four (24) months of such Business
              Combination by changes of the members of the Board of Directors of
              Orbital as a result of which the majority of the Board of
              Directors of Orbital consists of individuals other than Continuing
              Directors;

       (iii)  any event or series of events (which event or series of events may
              include, without limitation, a proxy fight or proxy solicitation
              with respect to the election of directors of Orbital made in
              opposition to the nominees recommended by the Continuing Directors
              during any period of twenty-four (24) consecutive months) as a
              result of which a majority of the members of the Board of
              Directors of Orbital consists of individuals other than Continuing
              Directors;

       (iv)   the sale, lease or exchange of all or substantially all of the
              property of Orbital to another Person, other than to any of its
              subsidiaries in the ordinary course of business of Orbital, it
              being understood that the sale, lease or exchange of all or
              substantially all of the satellite manufacturing business
              conducted by Orbital shall be deemed to constitute a sale, lease
              or exchange of all or substantially all of the property of Orbital
              for purposes of this Subsection (iv); or

       (v)    an assignment by Orbital for the benefit of its creditors, any
              proceedings under any bankruptcy or insolvency law involving
              Orbital, the decision by Orbital to

                                       26
<PAGE>   27

              avail itself of the benefit of any legislation for the benefit of
              debtors, or the taking of steps to wind up or terminate Orbital's
              existence.

       In addition, for purposes of this Article 5.1, "CONTINUING DIRECTORS"
       shall mean with respect to any period of twenty-four (24) consecutive
       months, (a) any members of the Board of Directors of Orbital on the first
       (1st) day of such period, (b) any members of the Board of Directors of
       Orbital elected after the first (1st) day of such period at any annual
       meeting of shareholders who were nominated by the Board of Directors of
       Orbital or a committee thereof, if a majority of the members of the Board
       of Directors of Orbital or such committee were Continuing Directors at
       the time of such nomination, and (c) any members of the Board of
       Directors of Orbital elected to succeed Continuing Directors by the Board
       of Directors of Orbital or a committee thereof, if a majority of the
       members of the Board of Directors of Orbital or such committee were
       Continuing Directors at the time of such election.

5.2    TELEGLOBE. From the date hereof, every time ORBCOMM wishes to purchase
       voice, data and Internet telecommunications services in an aggregate
       amount in excess of $100,000, it will grant Teleglobe (or any affiliate
       thereof) an opportunity to bid for all of its outsourced voice, data and
       Internet telecommunications needs. The request for proposals will be made
       upon customary terms for such types of services, without any
       out-of-commerce specifications other than those specifically required for
       purposes of the activities to be conducted by ORBCOMM. Teleglobe (or any
       affiliate thereof) will have the right to select which of the voice, data
       and Internet telecommunications needs it will bid upon. Upon completion
       of the bidding process, if ORBCOMM determines in its reasonable
       discretion that the terms and conditions (technical, financial and
       otherwise, taken as a whole) of an offer other than the Teleglobe offer
       are better than those of the Teleglobe offer (the "TELECOM BETTER
       OFFER"), then ORBCOMM will submit the terms and conditions of the Telecom
       Better Offer to Teleglobe and Teleglobe will have five (5) Business Days
       to match such Telecom Better Offer. If Teleglobe does not respond in
       writing stating that it matches all the terms and conditions of the
       Better Offer within such time constraint, it will have the same effect as
       Teleglobe refusing to match the Telecom Better Offer and ORBCOMM will be
       free to accept the Telecom Better Offer. If the Telecom Better Offer is
       matched by Teleglobe, the parties will proceed to the implementation of
       the services within thirty (30) days.

                                    ARTICLE 6

                                     GEMTRAK

6.1    PURCHASE AND SALE. Subject to the terms and conditions herein contained,
       Orbital and ORBCOMM or any affiliate thereof hereby agree to execute at
       Closing an asset purchase agreement pursuant to which Orbital will sell,
       transfer and assign to ORBCOMM or any

                                       27
<PAGE>   28

       affiliate thereof, and ORBCOMM or any affiliate thereof will purchase and
       accept from Orbital, the GEMtrak Business. The asset purchase agreement
       will be prepared in a form customary for similar transactions and will
       include, without limitation, customary representations and warranties as
       at March 31, 1999 and a list of purchased and excluded assets and assumed
       and non-assumed liabilities. The purchase and sale of the GEMtrak
       Business will be structured (i) so as to comply with the terms of the
       Indenture, and (ii) in the most efficient tax manner for, to the extent
       possible, all Parties involved, with Orbital's tax objectives prevailing.

6.2    PURCHASE PRICE. The price payable by ORBCOMM or any affiliate thereof to
       Orbital for the GEMtrak Business will be agreed upon in good faith
       between Orbital and Teleglobe, with the assistance of Booz Allen &
       Hamilton Inc. (the "GEMTRAK PURCHASE PRICE"). It is the current
       expectation of the Parties that the GEMtrak Purchase Price will be
       approximately equal to the ORBCOMM Canada Purchase Price. The Parties
       agree to provide Booz Allen & Hamilton Inc. with all required information
       in connection with the provision by it of such assistance. In the event
       Orbital and Teleglobe cannot agree on the GEMtrak Purchase Price by
       February 4, 2000, Orbital and Teleglobe will immediately mandate Bear
       Stearns & Co. to determine, at the latest by February 18, 2000, the fair
       value of the GEMtrak Business, in which case Orbital and Teleglobe agree
       that the GEMtrak Purchase Price will be the fair value of the GEMtrak
       Business as so determined by Bear Stearns & Co. The fees of Bear Stearns
       & Co. will be shared equally between Orbital and Teleglobe.

6.3    EFFECTIVE TIME OF SALE. The purchase and sale of the GEMtrak Business
       will occur and take effect as of the Closing Date.

6.4    PAYMENT. The GEMtrak Purchase Price will be payable in full on the
       Closing Date in a form to be agreed upon between the Parties.

6.5    ACCESS AND INVESTIGATION. Between the date of this Agreement and the
       Closing Date, Orbital will, and will cause its representatives to, afford
       ORBCOMM, Teleglobe and their representatives full and free access to
       Orbital's (as it relates to GEMtrak) personnel, properties, contracts,
       books and records, and other documents and data as ORBCOMM or Teleglobe
       may reasonably request.

6.6    OPERATION OF GEMTRAK BUSINESS. Between the date of this Agreement and the
       Closing Date, Orbital will not act so as to modify the current business
       organization of the GEMtrak Business and the relations and goodwill with
       suppliers, customers, landlords, creditors, employees, agents, and others
       having business relationships with the GEMtrak Business.

6.7    NON COMPETE. Orbital acknowledges that it has become familiar with the
       proprietary aspects of the GEMtrak Business including certain of the
       confidential information and trade secrets related to the GEMtrak
       Business and covenants and agrees that it shall not and shall cause its
       subsidiaries and affiliates not to, for a period of three (3) years from
       the date hereof, solely or jointly, on its own behalf or on behalf of any
       Person, directly or indirectly,

                                       28
<PAGE>   29

       in any capacity whatsoever including but not limited to, as a partner,
       shareholder, owner or otherwise:

       6.7.1  except in connection with the fulfillment of their respective
              obligations under any of the Definitive Agreements, carry on,
              engage, participate, invest or have an equity interest in, or have
              any financial interest in the developing, designing,
              manufacturing, and marketing and selling to commercial customers
              of automated tracking and cargo status data systems for unpowered
              mobile assets such as truck trailers, railcars and containers; or

       6.7.2  assist in or influence the engagement or hiring by any Person that
              competes with the GEMtrak Business of any salesman, distributor,
              or employee of the GEMtrak Business or otherwise cause any Person
              having a business relationship with the GEMtrak Business to sever
              such relationship with the GEMtrak Business.

       None of Orbital, its subsidiaries or its affiliates shall be in default
       under this Article 6.7 by virtue of holding for portfolio purposes as a
       passive investor not more than five percent (5%) of the issued and
       outstanding equity securities of a corporation, the securities of which
       are listed or quoted on a stock exchange or on an over-the-counter market
       within the United States or Canada.

                                    ARTICLE 7

                                 ORBCOMM CANADA

7.1    PURCHASE AND SALE. Subject to the terms and conditions herein contained,
       Teleglobe or any affiliate thereof and ORBCOMM or any affiliate thereof
       hereby agree to execute at Closing an agreement pursuant to which
       Teleglobe or any affiliate thereof will sell, transfer and assign to
       ORBCOMM or any affiliate thereof, and ORBCOMM or any affiliate thereof
       will purchase and accept from Teleglobe or any affiliate thereof, the
       business currently conducted by ORBCOMM Canada. The agreement will be
       either a share, subscription, merger or asset purchase agreement, will be
       prepared in a form customary for similar transactions and will include,
       without limitation, customary representations and warranties. The
       purchase and sale of the business of ORBCOMM Canada will be structured
       (i) so as to comply with the terms of the Indenture, and (ii) in the most
       efficient tax manner for, to the extent possible, all Parties involved
       with Teleglobe's tax objectives prevailing, including, without
       limitation, by crystallizing Teleglobe's participation in ORBCOMM Canada
       through the cancellation of outstanding common shares of ORBCOMM Canada,
       their replacement by preferred shares redeemable at the holder's option
       and the issuance of new common shares of ORBCOMM Canada to ORBCOMM or an
       affiliate thereof. Teleglobe will use its reasonable commercial efforts
       to sell 100% of the business of ORBCOMM

                                       29
<PAGE>   30

       Canada to ORBCOMM or any affiliate thereof, including the interest held
       by Meder Communications Inc.

7.2    PURCHASE PRICE. The price payable by ORBCOMM or any affiliate thereof to
       Teleglobe or any affiliate thereof for the business of ORBCOMM Canada
       will be agreed upon in good faith between Orbital and Teleglobe, with the
       assistance of Booz Allen & Hamilton Inc. (the "ORBCOMM CANADA PURCHASE
       PRICE"). It is the current expectation of the Parties that the ORBCOMM
       Canada Purchase Price will be approximately equal to the GEMtrak Purchase
       Price. The Parties agree to provide Booz Allen & Hamilton Inc. with all
       required information in connection with the provision by it of such
       assistance. In the event Orbital and Teleglobe cannot agree on the
       ORBCOMM Canada Purchase Price by February 4, 2000, Orbital and Teleglobe
       will immediately mandate Bear Stearns & Co. to determine, at the latest
       by February 18, 2000, the fair value of ORBCOMM Canada, in which case
       Orbital and Teleglobe agree that the ORBCOMM Canada Purchase Price will
       be the fair value of ORBCOMM Canada as so determined by Bear Stearns &
       Co. The fees of Bear Stearns & Co. will be shared equally between Orbital
       and Teleglobe.

7.3    EFFECTIVE TIME OF SALE. The purchase and sale of the business of ORBCOMM
       Canada will occur and take effect as of the Closing Date.

7.4    PAYMENT. The ORBCOMM Canada Purchase Price is payable in full on the
       Closing Date in a form to be agreed upon between the Parties.

7.5    ACCESS AND INVESTIGATION. Between the date of this Agreement and the
       Closing Date, Teleglobe will, and will cause ORBCOMM Canada and its
       representatives to, afford ORBCOMM, Orbital and their representatives
       full and free access to ORBCOMM Canada's personnel, properties,
       contracts, books and records, and other documents and data as ORBCOMM or
       Orbital may reasonably request.

7.6    OPERATION OF THE BUSINESS OF ORBCOMM CANADA. Between the date of this
       Agreement and the Closing Date, Teleglobe will, and will cause ORBCOMM
       Canada to, conduct the business of ORBCOMM Canada only in the normal
       course, use their best efforts to preserve intact the current business
       organization of ORBCOMM Canada and maintain the relations and goodwill
       with suppliers, customers, landlords, creditors, employees, agents, and
       others having business relationships with ORBCOMM Canada, and confer with
       ORBCOMM concerning operational matters of a material nature. Teleglobe
       will cause all indebtedness owed to ORBCOMM Canada by either Teleglobe or
       any of its affiliates to be paid in full prior to Closing.

7.7    NON COMPETE. Teleglobe acknowledges that it has become familiar with the
       proprietary aspects of the business conducted by ORBCOMM Canada including
       certain of the confidential information and trade secrets related to the
       such business and covenants and agrees that it shall not and shall cause
       its subsidiaries and affiliates not to, for a period of three (3) years
       from the date hereof, solely or jointly, on its own behalf or on behalf
       of any

                                       30
<PAGE>   31

       Person, directly or indirectly, in any capacity whatsoever including but
       not limited to, as a partner, shareholder, owner or otherwise:

       7.7.1  except in connection with the fulfillment of their respective
              obligations under any of the Definitive Agreements, carry on,
              engage, participate, invest or have an equity interest in, or have
              any financial interest in the marketing or selling in Canada of
              commercial low-Earth orbit non-voice satellite communications
              services operating in the 137-150 MHz band or such other frequency
              allocated to "little LEO" mobile satellite services below 1 GHz;
              or

       7.7.2  assist in or influence the engagement or hiring by any Person that
              competes with the business conducted by ORBCOMM Canada of any
              salesman, distributor, or employee of ORBCOMM Canada or otherwise
              cause any Person having a business relationship with ORBCOMM
              Canada to sever such relationship with ORBCOMM Canada.

       None of Teleglobe, its subsidiaries or its affiliates shall be in default
       under this Article 7.7 by virtue of holding for portfolio purposes as a
       passive investor not more than five percent (5%) of the issued and
       outstanding equity securities of a corporation, the securities of which
       are listed or quoted on a stock exchange or on an over-the-counter market
       within the United States or Canada.

                                    ARTICLE 8

                                OTHER AGREEMENTS

8.1    PRESS RELEASE AND SEC FILINGS. Upon the execution of this Agreement,
       Teleglobe and Orbital will disseminate the press release attached hereto
       as Schedule F, and ORBCOMM will promptly file such press release with the
       United States Securities and Exchange Commission on Form 8-K or other
       appropriate form.

8.2    MERGER. Each of the Partners agrees to contribute their respective
       Partnership Interests in ORBCOMM USA and ORBCOMM International to ORBCOMM
       upon the execution of this Agreement (the "MERGER") and, to that effect,
       to take such actions and execute such documents, including, without
       limitation, the agreements in a form substantially similar to the
       agreements attached hereto as Schedule G, as ORBCOMM may reasonably
       request in order to effect the Merger. The System Charge Agreements will
       terminate upon the effective date of the Merger.

8.3    ADMINISTRATIVE SERVICES AGREEMENT. The Administrative Services Agreement
       will terminate upon the Closing Date and all relevant provisions will be
       included in the sublease to be executed pursuant to Article 8.6 hereof.

                                       31
<PAGE>   32

8.4    FCC LICENSES. Orbital and OCC agree to:

       8.4.1  within three (3) Business Days of the date by which an aggregate
              of seventy-five million dollars ($75,000,000) in capital
              contributions or similar equity interests will have been made to
              ORBCOMM by any Person from January 1, 2000 (excluding
              contributions referred to in Subsections 3.2.2 and 3.3.3 hereof
              but including the contribution referred to in Subsection 3.5.2
              hereof), file an application with the FCC for the transfer of the
              FCC Licenses to ORBCOMM, in a form reasonably satisfactory to
              ORBCOMM; provided, however, that ORBCOMM shall have paid all
              amounts invoiced under the Procurement Agreements as permitted
              hereunder (other than with respect to amounts that ORBCOMM in good
              faith has given notice of dispute thereof);

       8.4.2  as may be requested by ORBCOMM, provide all necessary support for
              such transfer to occur at the earliest time possible following its
              filing;

       8.4.3  as may be requested by ORBCOMM, support all of ORBCOMM's future
              applications, petitions and communications with the FCC against
              payment of all reasonable out-of-pocket expenses incurred in doing
              so; and

       8.4.4  take such actions and execute such documents as ORBCOMM may
              reasonably request in order to effect such obligations.

       In the event the satisfactory filing referred to in Subsection 8.4.1
       hereof does not occur on the date indicated, Orbital will no longer be
       entitled to invoice ORBCOMM for any amount, under the Procurement
       Agreements or otherwise, and the application of Article 5.1 will be
       suspended until such satisfactory filing occurs.

8.5    STEEPLECHASE LEASE. The Parties agree that Orbital shall sublease to
       ORBCOMM the building (not the land) to be developed on Lot 8A, The
       Corporate Center at Steeplechase, in compliance with the terms of the
       Lease Agreement executed between Boston Properties Limited Partnership
       and Orbital as of April 15, 1999 (the "STEEPLECHASE LEASE"). Such
       sublease agreement will have payment terms consistent with the terms of
       the Steeplechase Lease with respect to the square footage of such
       building (not the land) covered by such sublease agreement without any
       mark-up being charged or retained by Orbital. The sublease agreement
       shall be executed at Closing, shall be assignable with the prior written
       consent of Orbital which shall not be unreasonably withheld or delayed
       and will be effective as of the Lease Commencement Date as defined in the
       Steeplechase Lease. Orbital agrees that it will not have the right to
       terminate such sublease agreement otherwise than in accordance with the
       terms of the Steeplechase Lease. The sublease agreement will also provide
       that ORBCOMM's employees will have access to Orbital's employee cafeteria
       located nearest to the premises described above. In addition, at Closing,
       Teleglobe will indemnify Orbital with respect to amounts payable by
       ORBCOMM under such sublease agreement for a period of one year from the
       date of ORBCOMM's default under such sublease agreement, the whole upon
       terms and conditions to be negotiated in good faith

                                       32
<PAGE>   33

       between Orbital and Teleglobe, provided, however, that such
       indemnification shall not apply to accelerated monetary obligations.

8.6    NETWORK OPERATION CENTER LEASE. The Parties agree that Orbital and
       ORBCOMM will enter at Closing into a sub-lease agreement with respect to
       that portion of the premises where ORBCOMM's Network Operation Center and
       engineering and other services are located and where ORBCOMM employees
       will remain in the Orbital Dulles facilities located on Atlantic
       Boulevard. Such sublease agreement will consist of a flow-through of the
       lease amounts and operating expenses payable by Orbital with respect to
       the square footage covered by such sublease agreement without any mark-up
       being charged or retained by Orbital. Orbital agrees that it will not
       have the right to terminate such sublease agreement, otherwise than upon
       the expiration of the term of the main lease (if not renewed), without
       ORBCOMM's prior written consent, which can be withheld for any reason. In
       addition, if ORBCOMM so requests upon six-month prior written notice,
       Orbital will terminate such sublease agreement but will be entitled to
       the reimbursement of reasonable expenses incurred in order to comply with
       the terms of the main lease relating to the reinstatement of such
       premises to the physical state provided for in the main lease.

8.7    HORSE PEN ROAD LEASE. At Closing (i) Orbital will enter into a sublease
       agreement with ORBCOMM with respect to Orbital's subleasing of 25,000
       square feet of the building located at 2455 Horse Pen Road, Herndon,
       Virginia, such sublease agreement to commence on the Lease Commencement
       Date under the Steeplechase Lease and to have payment terms consistent
       with the terms of the main lease with respect to the square footage
       covered by such sublease agreement without any mark-up being charged or
       retained by ORBCOMM, and (ii) Teleglobe will indemnify Orbital with
       respect to ORBCOMM's obligations (to the extent not assumed by Orbital)
       under the main lease for Horse Pen Road, upon terms and conditions to be
       negotiated in good faith between Orbital and Teleglobe.

                                    ARTICLE 9

                                     CLOSING

9.1    CLOSING OBLIGATIONS. The Parties acknowledge and agree that the following
       steps and actions will occur on the Closing Date:

       9.1.1  The Parties will complete or confirm in writing completion of the
              transactions referred to in Article 3.10 and Article 3.12 hereof;

       9.1.2  Orbital and ORBCOMM or an affiliate thereof will execute an asset
              purchase agreement to give effect to the provisions of Article 6
              hereof;

                                       33
<PAGE>   34

       9.1.3  Teleglobe or an affiliate thereof and ORBCOMM or an affiliate
              thereof will execute a share purchase agreement, an asset purchase
              agreement or any other agreement to give effect to the provisions
              of Article 7 hereof; and

       9.1.4  Orbital and ORBCOMM will complete the transactions referred to in
              Articles 8.5, 8.6 and 8.7 hereof;

       9.1.5  Orbital and OCC will deliver a certificate executed by Orbital and
              OCC representing and warranting to Teleglobe, Teleglobe Mobile and
              ORBCOMM that each of Orbital's and OCC's representations and
              warranties in Article 10.1 and elsewhere in this Agreement was
              accurate in all respects as of the date of this Agreement and is
              accurate in all respects as of the Closing Date as if made on the
              Closing Date and that each of Orbital's and OCC's covenants and
              undertakings to be executed on or prior to the Closing Date under
              this Agreement have been executed; and

       9.1.6  Teleglobe and Teleglobe Mobile will deliver a certificate executed
              by Teleglobe and Teleglobe Mobile representing and warranting to
              Orbital, OCC and ORBCOMM that each of Teleglobe's and Teleglobe
              Mobile's representations and warranties in Article 10.2 and
              elsewhere in this Agreement was accurate in all respects as of the
              date of this Agreement and is accurate in all respects as of the
              Closing Date as if made on the Closing Date and that each of
              Teleglobe's and Teleglobe Mobile's covenants and undertakings to
              be executed on or prior to the Closing Date under this Agreement
              have been executed.

                                   ARTICLE 10

                         REPRESENTATIONS AND WARRANTIES

10.1   REPRESENTATIONS AND WARRANTIES OF ORBITAL AND OCC. Each of Orbital and
       OCC hereby represents and warrants to each of ORBCOMM, Teleglobe and
       Teleglobe Mobile that:

       10.1.1 DUE INCORPORATION AND CAPACITY OF ORBITAL AND OCC. Each of Orbital
              and OCC is a corporation duly incorporated and organized, validly
              existing and in good standing under the laws of Delaware with full
              corporate power and authority to conduct its business as it is now
              conducted and to own or use the properties and assets that it
              purports to own or use. Each of Orbital and OCC has all the
              necessary rights, power and authority to enter into, execute and
              deliver this Agreement and to perform its obligations hereunder.
              The entry into, execution and delivery of this Agreement and the
              performance by each of Orbital and OCC of its obligations
              hereunder have been duly authorized and approved by all necessary
              corporate action of their respective Board of Directors.

                                       34
<PAGE>   35

       10.1.2 BINDING NATURE. This Agreement constitutes a legal, valid and
              binding obligation of Orbital and OCC enforceable against them in
              accordance with its terms.

       10.1.3 CONSENTS. Except for the consent of Orbital's lenders in
              connection with the conversion referred to in Subsection 3.3.3
              hereof, no material licenses, consents, approvals or
              authorizations of, or declaration or filing with, any governmental
              authority need to be obtained or made by Orbital or OCC as a
              condition to or in connection with the execution, delivery and
              performance by each of Orbital and OCC of this Agreement.

       10.1.4 NO VIOLATION. The execution, delivery and performance by each of
              Orbital and OCC of this Agreement do not and will not conflict
              with or result in a breach of the terms, conditions or provisions
              of, or give rise to a right of termination or constitute a default
              under, or result in any violation of, (i) any law, rule or
              regulation to which Orbital or OCC or any of their respective
              property and assets are subject, (ii) the constating documents or
              by-laws of Orbital and OCC, (iii) any resolutions of the directors
              or shareholders of Orbital or OCC, (iv) except for the consent of
              lenders in connection with the conversion referred to in
              Subsection 3.3.3 hereof, any mortgage, credit agreement or other
              material agreement or instrument to which Orbital or OCC is a
              party, (v) any order, judgement or decree binding on Orbital or
              OCC or any of their property, or (vi) any material license, waiver
              or permit currently held by Orbital or OCC. The execution,
              delivery and performance by each of Orbital and OCC of, and any
              compliance with, this Agreement will not result in the creation of
              any lien upon any of the property and assets of Orbital, OCC or
              ORBCOMM.

       10.1.5 ACTIONS PENDING. There is no action, suit or proceeding pending,
              or to the knowledge of Orbital or OCC, threatened against Orbital
              or OCC before any court, arbitrator or governmental body, agency
              or official, which (i) questions the validity of any of the
              transactions contemplated by this Agreement or (ii) would, if
              adversely determined, have a material adverse effect on the
              business, financial position or results of operations of Orbital,
              OCC or the GEMtrak Business.

       10.1.6 FCC LICENSES. OCC is the sole, true and absolute registered holder
              of the FCC Licenses and the FCC Licenses are sufficient
              authorization from the FCC for ORBCOMM to operate the ORBCOMM
              system in the United States as presently operated. Except as
              disclosed in Schedule H hereof, there is no outstanding or
              unresolved application by OCC for any FCC authorization (including
              any renewal of any FCC License). The FCC Licenses are valid and in
              full force and effect, unimpaired by any condition or restriction
              or any act or omission by Orbital or OCC which is reasonably
              likely to have a material adverse effect on ORBCOMM. Except as
              disclosed in Schedule H hereof, there are no modifications,
              amendments, applications, revocations or other proceedings pending
              or, to the knowledge of Orbital or OCC, threatened, with respect
              to the FCC Licenses (other

                                       35
<PAGE>   36

              than proceedings that apply to the telecommunications industry
              generally), and no event has occurred which, with or without the
              giving of notice or lapse of time or both, would constitute
              grounds for revocation of the FCC Licenses. Except where a lack of
              compliance is not reasonably likely to have a material adverse
              effect, since January 1, 1999 all reports required by the
              Communications Act or required to be filed with the FCC by Orbital
              or OCC have been filed and are accurate and complete in all
              material respects. Except where a lack of compliance is not
              reasonably likely to have a material adverse effect, Orbital and
              OCC have operated their business in compliance with the
              Communications Act and the rules, regulations, policies and orders
              thereunder. Orbital and OCC have not received any notice (or
              otherwise been advised) to the effect that they are in violation
              of any of such statutes, rules, regulations, policies or orders.

       10.1.7 OWNERSHIP OF ORBCOMM AND ORBCOMM USA PARTNERSHIP INTERESTS. OCC is
              the sole, true and absolute owner and registered holder of the
              ORBCOMM and ORBCOMM USA Partnership Interests described in Article
              4.1 and Article 4.3 with good and marketable title thereto, free
              and clear of any mortgage, hypothec, pledge, security interest,
              lien, charge or encumbrance or option or other rights of others
              whatsoever.

       10.1.8 GEMTRAK FINANCIAL STATEMENTS. Orbital has delivered to Teleglobe
              and ORBCOMM the unaudited balance sheet of the GEMtrak Business as
              at March 31, 1999 (the "GEMTRAK FINANCIAL STATEMENT"). The GEMtrak
              Financial Statement fairly presents the financial condition of the
              GEMtrak Business as at March 31, 1999, in accordance with United
              States generally accepted accounting principles. Except as
              disclosed in the GEMtrak Financial Statement, the GEMtrak Business
              has no undisclosed liabilities or obligations of any nature
              (whether known or unknown and whether absolute, accrued,
              contingent, or otherwise) except for current liabilities incurred
              in the ordinary course of business since the date thereof.

10.2   REPRESENTATIONS AND WARRANTIES OF TELEGLOBE AND TELEGLOBE MOBILE. Each of
       Teleglobe and Teleglobe Mobile hereby represents and warrants to each of
       ORBCOMM, Orbital and OCC that:

       10.2.1 DUE INCORPORATION OR FORMATION AND CAPACITY OF TELEGLOBE,
              TELEGLOBE MOBILE AND ORBCOMM CANADA. Teleglobe is a corporation
              duly incorporated and organized, validly existing and in good
              standing under the Canada Business Corporations Act. Teleglobe
              Mobile is a general partnership duly formed under the laws of
              Delaware. Each of Teleglobe and Teleglobe Mobile has all the
              necessary right, power and authority to enter into, execute and
              deliver this Agreement and to perform its obligations hereunder.
              The entry into, execution and delivery of this Agreement and the
              performance by each of Teleglobe and Teleglobe Mobile of its
              obligations hereunder have been duly authorized and approved by
              all necessary corporate action of the Board of Directors of,

                                       36
<PAGE>   37

              respectively, Teleglobe and Teleglobe Mobile Investment Inc.,
              Teleglobe Mobile's general partner.

       10.2.2 BINDING NATURE. This Agreement constitutes a legal, valid and
              binding obligation of Teleglobe and Teleglobe Mobile enforceable
              against them in accordance with its terms.

       10.2.3 CONSENTS. No material licenses, consents, approvals or
              authorizations of, or declaration or filing with, any governmental
              authority need to be obtained or made by Teleglobe or Teleglobe
              Mobile as a condition to or in connection with the execution,
              delivery and performance by each of Teleglobe and Teleglobe Mobile
              of this Agreement.

       10.2.4 NO VIOLATION. The execution, delivery and performance by each of
              Teleglobe and Teleglobe Mobile of this Agreement do not and will
              not conflict with or result in a breach of the terms, conditions
              or provisions of, or give rise to a right of termination or
              constitute a default under, or result in any violation of, (i) any
              law, rule or regulation to which Teleglobe or Teleglobe Mobile or
              any of their respective property and assets are subject, (ii) the
              constating documents or by-laws, as applicable, of Teleglobe and
              Teleglobe Mobile, (iii) any resolutions of the directors,
              shareholders or partners, as applicable, of Teleglobe or Teleglobe
              Mobile, (iv) any mortgage, credit agreement or other material
              agreement or instrument to which Teleglobe or Teleglobe Mobile is
              a party, (v) any order, judgement or decree binding on Teleglobe
              or Teleglobe Mobile or any of their property, or (vi) any material
              license, waiver or permit currently held by Teleglobe or Teleglobe
              Mobile. The execution, delivery and performance by each of
              Teleglobe and Teleglobe Mobile of, and any compliance with, this
              Agreement will not result in the creation of any lien upon any of
              the property and assets of Teleglobe, Teleglobe Mobile and
              ORBCOMM.

       10.2.5 ACTIONS PENDING. There is no action, suit or proceeding pending,
              or to the knowledge of Teleglobe or Teleglobe Mobile, threatened
              against Teleglobe or Teleglobe Mobile before any court, arbitrator
              or governmental body, agency or official, which (i) questions the
              validity of any of the transactions contemplated by this Agreement
              or (ii) would, if adversely determined, have a material adverse
              effect on the business, financial position or results of
              operations of Teleglobe or Teleglobe Mobile.

       10.2.6 ORBCOMM AND ORBCOMM INTERNATIONAL PARTNERSHIP INTERESTS. Teleglobe
              Mobile is the sole, true and absolute owner and registered holder
              of the ORBCOMM and ORBCOMM International Partnership Interests
              described in Article 4.1 and Article 4.4 with good and marketable
              title thereto, free and clear of any mortgage, hypothec, pledge,
              security interest, lien, charge or encumbrance or option or other
              rights of others whatsoever.

                                       37
<PAGE>   38

       10.2.7 ORBCOMM CANADA FINANCIAL STATEMENTS. Teleglobe has delivered to
              Orbital and ORBCOMM the unaudited balance sheet of ORBCOMM Canada
              as at December 31 in each of the years 1996 through 1998, and the
              related unaudited statement of income, changes in stockholders'
              equity, and cash flow for each of the fiscal years then ended (the
              "ORBCOMM CANADA FINANCIAL STATEMENTS"). The ORBCOMM Canada
              Financial Statements fairly present the financial condition and
              the results of operations, changes in stockholders' equity, and
              cash flow of ORBCOMM Canada as at the respective dates of and for
              the periods referred to in such financial statements, all in
              accordance with Canadian generally accepted accounting principles,
              and the ORBCOMM Canada Financial Statements reflect the consistent
              application of such accounting principles throughout the periods
              involved. Except as disclosed in the ORBCOMM Canada Financial
              Statements, ORBCOMM Canada has no undisclosed liabilities or
              obligations of any nature (whether known or unknown and whether
              absolute, accrued, contingent, or otherwise) except for current
              liabilities incurred in the ordinary course of business since the
              respective dates thereof.

                                   ARTICLE 11

                                 INDEMNIFICATION

11.1   For the purposes of any claim alleging that one of the representations or
       warranties contained herein is false or incorrect on the date hereof or
       on the Closing Date, the rights ensuing from these representations and
       warranties shall continue to have effect for a period of two years after
       the date hereof notwithstanding any inspection, inquiry and verification
       made by any Party or on its behalf.

11.2   If a representation or warranty of any Party is false or incorrect, such
       Party and any Indemnifying Party (as defined below), on prior written
       notice from any other Party, agrees to undertake the requisite measures
       within 30 days from receipt of such notice to remedy the default. For the
       purpose of Article 11, the Party whose representation or warranty is
       false or incorrect is referred to as the "INDEMNIFYING PARTY" and the
       other Parties are referred to as the "INDEMNIFIED PARTIES".

11.3   The Indemnifying Party undertakes to indemnify the Indemnified Parties,
       jointly and severally with any other Indemnifying Party, for the amount
       of the damages (which shall include all losses, damages, liabilities,
       reasonable costs and expenses (including, without limitation, all
       reasonable legal and other professional fees and disbursements, interest,
       penalties and amounts paid in settlement)) sustained by the Indemnified
       Parties as a result of or arising directly out of or in connection with
       any breach or inaccuracy of any representation or warranty of an
       Indemnifying Party contained in this Agreement, provided that:

                                       38
<PAGE>   39

       11.3.1 an Indemnifying Party shall not be required to indemnify or save
              harmless the Indemnified Parties in respect of any breach or
              inaccuracy of a representation or warranty unless (i) one of the
              Indemnified Parties shall have provided notice to the Indemnifying
              Party of such breach or inaccuracy, and (ii) such breach or
              inaccuracy shall not have been remedied by an Indemnifying Party
              in accordance with Section 11.2 to the satisfaction of the
              Indemnified Parties acting reasonably, provided, however, that all
              damages sustained by the Indemnified Parties as a result of or
              arising directly out of or in connection with any breach or
              inaccuracy of any representation or warranty of an Indemnifying
              Party contained in this Agreement during the period prior to such
              remedy shall be subject to the indemnification provisions of
              Section 11.3;

       11.3.2 if a third party files a claim against an Indemnified Party and
              this claim is likely to entail falsity or inaccuracy in one or
              another of the representations and warranties given by an
              Indemnifying Party, the latter shall have the right, at its
              expense, to participate in or assume control of the negotiations,
              settlement or contestation of the third-party claim. In such case,
              the Indemnifying Party shall reimburse the Indemnified Parties for
              all reasonable costs and expenses the latter shall incur because
              of such contestation. If the Indemnifying Party opts to assume
              control of the matter, the Indemnified Parties must co-operate
              with it, may participate in the negotiation, settlement or
              contestation of the third-party claims and shall have the right to
              choose together with the Indemnifying Party the attorney
              responsible for contesting this claim.

11.4   The amount of the indemnification for any damages which the Indemnified
       Parties shall be entitled to receive pursuant to this Agreement shall be
       payable within 30 days following the 30-day period contemplated in
       Section 11.2 and shall be determined after giving effect to (i) the
       provisions of Section 11.3, (ii) tax savings and (iii) recoveries from
       third parties.

                                   ARTICLE 12

                                  MISCELLANEOUS

12.1   SUCCESSORS AND ASSIGNS. This Agreement and the rights and obligations set
       forth herein shall not be assignable by the Parties. The provisions of
       this Agreement shall, except as otherwise provided herein, enure to the
       benefit of and be binding upon the Parties and their respective heirs,
       executors, administrators and successors and each and every Person so
       bound shall make, execute and deliver all documents necessary to carry
       out this Agreement.

12.2   EXPENSES. Except as otherwise specifically provided herein, each Party
       shall bear and be responsible for all of its costs and expenses,
       including financial advisory and legal fees and disbursements, incurred
       in connection with this Agreement and the transactions hereby
       contemplated.

                                       39
<PAGE>   40

12.3   PUBLIC ANNOUNCEMENT. Except as provided herein or as required by law, no
       press release related to this Agreement or the transactions contemplated
       herein shall be issued without the joint approval of Teleglobe and
       Orbital.

12.4   ENTIRE AGREEMENT. Except for the other Definitive Agreements, as amended
       pursuant to the terms hereof, this Agreement constitutes the entire
       agreement between the Parties with respect to the subject matter hereof
       and the transactions herein contemplated and replaces all previous
       agreements and understandings, if any, between the Parties with respect
       to the subject matter hereof and the transactions contemplated herein.

12.5   RESOLUTION OF DISPUTES. Any controversy or claim that may arise under,
       out of or in connection with or relating to this Agreement or any breach
       hereof shall be settled in accordance with the terms of Article 13.4 of
       the Master Agreement.

12.6   NOTICES. All notices, consents, waivers, and other communications under
       this Agreement must be in writing and will be deemed to have been duly
       given when (i) delivered by hand (with written confirmation of receipt),
       (ii) sent by telecopier (with written confirmation of receipt), or (iii)
       when received by the addressee, if sent by a nationally recognized
       overnight delivery service (receipt requested), in each case to the
       appropriate addresses and telecopier numbers set forth below:

       If to Orbital or OCC:

       Orbital Sciences Corporation
       21700 Atlantic Boulevard
       Dulles, Virginia
       20166-6801
       Fax: 703.406.3502

       Attention: Executive Vice President and Chief Financial Officer

       If to Teleglobe or Teleglobe Mobile:

       Teleglobe Inc.
       1000 de La Gauchetiere Street West
       Montreal, Quebec
       H3B 4X5
       Fax: 514.868.7438

       Attention:  Vice President, Chief Legal Officer and Corporate Secretary

                                       40
<PAGE>   41

       If to ORBCOMM:

       ORBCOMM Global, L.P.
       2455 Horse Pen Road
       Herndon, Virginia
       20171-3426
       Fax: 703.406.5933

       Attention: Senior Vice President and General Counsel

       Notice of change of address may be given by any Party in the same manner.

12.7   FURTHER ASSURANCES. Each Party shall do such acts and shall execute such
       further documents, conveyances, deeds, assignments, transfers and the
       like, and will cause the doing of such acts and will cause the execution
       of such further documents as are within its power as any other Party may
       in writing at any time and from time to time reasonably request be done
       or executed, in order to give full effect to the provisions of this
       Agreement.

12.8   INDENTURE. Should the consummation or implementation of any of the
       agreements provided herein result in a breach of the terms of the
       Indenture, the Parties agree to negotiate in good faith a modification to
       any such agreement so that the intended result of such agreement will be
       attained without breaching the terms of the Indenture.

12.9   TIME OF ESSENCE. Time shall be of the essence of this Agreement.

12.10  COUNTERPARTS. This Agreement may be executed in one or more counterparts
       each of which when so executed shall be deemed to be an original and such
       counterparts together shall constitute but one of the same instrument.

    [remainder of page intentionally left blank -- signature page to follow]

                                       41
<PAGE>   42

IN WITNESS WHEREOF the Parties have executed this Agreement as of the date set
out above.

                                       ORBITAL SCIENCES CORPORATION

                                       Per:
                                           ---------------------------------

                                       ORBITAL COMMUNICATIONS CORPORATION

                                       Per:
                                           ---------------------------------

                                       TELEGLOBE INC.

                                       Per:
                                           ---------------------------------
                                           Andre Bourbonnais
                                           Vice President, Chief Legal Officer
                                           and Corporate Secretary

                                       TELEGLOBE MOBILE PARTNERS
                                       by its General Partner
                                       TELEGLOBE MOBILE INVESTMENT INC.

                                       Per:
                                           ---------------------------------
                                           Andre Bourbonnais
                                           President

                                       ORBCOMM GLOBAL, L.P.

                                       Per:
                                           ---------------------------------
                                           Scott Webster
                                           President and Chief Executive Officer

                                       42

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