Document:

Prudential Financial, Inc. Omnibus Incentive Plan (amended & restated).

 Exhibit 10.3 
 PRUDENTIAL FINANCIAL, INC. 
 OMNIBUS INCENTIVE PLAN 
 (Amended and Restated Effective October 10, 2006) 
 ARTICLE I 
 PURPOSE 
 The purpose of the “Prudential Financial, Inc. Omnibus Incentive Plan” (the “Plan”) is to foster and promote the long-term financial
success of Prudential Financial, Inc. (the “Company”) and materially increase shareholder value by (a) motivating superior employee performance by means of performance-related incentives, (b) encouraging and providing for the
acquisition of an ownership interest in the Company by the Company’s and its Subsidiaries’ (as hereinafter defined) employees, and (c) enabling the Company to attract and retain the services of employees upon whose judgment, interest,
and effort the successful conduct of its operations is largely dependent. 
 The Company has previously adopted the Prudential Financial,
Inc. Stock Option Plan (the “Stock Option Plan”), which was intended to provide similar equity-based compensation incentives through the grant of stock options and stock appreciation rights. Effective upon the adoption of the Plan by
shareholders of the Company, the Stock Option Plan will be merged into this Plan, thereby making available for the grant of awards under this Plan any authorized but unused shares of Common Stock (as herein defined) not already used for such purpose
under the Stock Option Plan. All outstanding award grants under the Stock Option Plan shall continue in full force and effect, subject to their original terms, after the Stock Option Plan is merged into the Plan under the terms and conditions noted
above. 
 ARTICLE II 
 DEFINITIONS 
 Section 2.1 Definitions. Whenever used herein, the following terms shall have the
respective meanings set forth below: 
 (a) Adjusted Operating Income. “Adjusted Operating Income” means the
income from continuing operations before income taxes of the Company’s Financial Services Businesses, excluding: realized investment gains, net of losses and related charges and adjustments; sales practices remedies and costs; 

  

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demutualization costs and expenses; and the contributions to income/loss of divested businesses that have been sold or exited by the Company but did not
qualify for “discontinued operations” accounting treatment under generally accepted accounting principles. 
 (b)
Adjustment Event. “Adjustment Event” means any stock dividend, stock split or share combination of, or extraordinary cash dividend on, the Common Stock or recapitalization, reorganization, merger, consolidation, split-up, spin-off,
combination, dissolution, liquidation, exchange of shares, warrants or rights offering to purchase Common stock at a price substantially below Fair Market Value, or other similar event affecting the Common Stock of the Company. 
 (c) Alternative Awards. “Alternative Awards” shall have the meaning set forth in Section 10.3. 
 (d) Annual Incentive Awards. “Annual Incentive Awards” means an Award made pursuant to Article IX of the Plan with a
Performance Cycle of one year or less. 
 (e) Approved Retirement. “Approved Retirement” means termination of
a Participant’s employment (i) on or after having met the conditions for normal or early retirement established under any defined benefit pension plan maintained by the Company or a Subsidiary and in which the Participant
participates or (ii) on or after attaining such age not less than 50 and completing such period of service, as the Committee shall determine from time to time. Notwithstanding the foregoing, with respect only to Participants who reside
in the United States, the term “Approved Retirement” shall not apply to any Participant: (a) who has an Agent Emeritus contract with an insurance affiliate of the Company (including, but not limited to, The Prudential Insurance
Company of America), whether or not such individual is deemed to be retirement eligible or is receiving retirement benefits under any defined benefit pension plan maintained by the Company or a Subsidiary and in which the Participant participates;
or (b) to any Participant whose employment with the Company or a Subsidiary has been terminated for Cause, in either case whether or not such individual is deemed to be retirement eligible or is receiving retirement benefits under any defined
benefit pension plan maintained by the Company or a Subsidiary and in which the Participant participates or would otherwise satisfy the criteria set forth by the Committee as noted in the preceding sentence. 
 (f) Award. An “Award” means the award of an Annual Incentive Award, a Long-Term Performance Unit Award, an Option, a SAR,
a Restricted Unit, Restricted Stock or Performance Share, including any associated Dividend 

  

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Equivalents, under the Plan, and shall also include an award of Restricted Stock or Restricted Units ( including any associated Dividend Equivalents) made in
conjunction with other incentive programs established by the Company or its Subsidiaries and so designated by the Committee. 
 (g) Beneficial Owner. “Beneficial Owner” means any “person,” as such term is used in Section 13(d) of the Exchange Act, who, directly or indirectly, has or shares the right to vote, dispose of, or otherwise
has “beneficial ownership” of such securities (within the meaning of Rule 13d-3 and Rule 13d-5 under the Exchange Act), including pursuant to any agreement, arrangement or understanding (whether or not in writing). 
 (h) Board. “Board” means the Board of Directors of the Company. 
 (i) Cause. “Cause” means, with respect to a Participant, any of the following (as determined by the Committee in its sole
discretion): (i) dishonesty, fraud or misrepresentation; (ii) inability to obtain or retain appropriate licenses; (iii) violation of any rule or regulation of any regulatory agency or self-regulatory agency; (iv) violation of any
policy or rule of the Company or any Subsidiary; (v) commission of a crime; (vi) breach by a Participant of any written covenant or agreement with the Company or any Subsidiary not to disclose or misuse any information pertaining to, or
misuse any property of, the Company or any Subsidiary, or (vii) any act or omission detrimental to the conduct of the business of the Company or any Subsidiary in any way. 
 (j) Change of Control. A “Change of Control” shall be deemed to have occurred if any of the following events shall occur:

 (i) any Person is or becomes the Beneficial Owner, either directly or indirectly, of securities of the Company representing
twenty-five percent (25%) or more of the combined Voting Power of the Company’s securities; or 
 (ii) within any
twenty-four (24) month period, the Incumbent Directors shall cease to constitute at least a majority of the Board or the board of directors of any successor to the Company; provided, however, that any director elected to the
Board, or nominated for election, by a majority of the Incumbent Directors then still in office shall be deemed to be an Incumbent Director for purposes of this subclause (ii); or 
 (iii) upon the consummation of a Corporate Event, immediately following the consummation of which the stockholders of the Company
immediately prior to such Corporate Event do not hold, directly or 

  

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indirectly, a majority of the Voting Power of (x) in the case of a merger or consolidation, the surviving or resulting corporation,
(y) in the case of a share exchange, the acquiring corporation or (z) in the case of a division or a sale or other disposition of assets, each surviving, resulting or acquiring corporation which, immediately following the
relevant Corporate Event, holds more than twenty-five percent (25%) of the consolidated assets of the Company immediately prior to such Corporate Event; or 
 (iv) any other event occurs which the Board declares to be a Change of Control. 
 Notwithstanding the foregoing, a Change of Control shall not be deemed to have occurred merely as a result of an underwritten offering of the equity
securities of the Company where no Person (including any “group” (within the meaning of Rule 13d-5(b) under the Exchange Act)) acquires more than twenty-five percent (25%) of the beneficial ownership interests in such securities.

 (k) Change of Control Price. “Change of Control Price” means the highest price per share of Common Stock
paid in conjunction with any transaction resulting in a Change of Control (as determined in good faith by the Committee if any part of the offered price is payable other than in cash) or, in the case of a Change of Control occurring solely by reason
of a change in the composition of the Board, the highest Fair Market Value of the Common Stock on any of the 30 trading days immediately preceding the date on which a Change of Control occurs; provided that, with respect to any portion of any
Option or SAR, the Change of Control Price shall not exceed the Fair Market Value of the Common Stock on the date that a Change of Control occurs. 
 (l) Code. “Code” means the Internal Revenue Code of 1986, as amended, including, for these purposes, any regulations promulgated by the Internal Revenue Service with respect to the provisions of the
Code (“Treasury Regulations”), and any successor thereto. 
 (m) Committee. “Committee” means the
Compensation Committee of the Board or such other committee of the Board as the Board shall designate from time to time, which committee shall consist of two or more members, each of whom shall be a “Non-Employee Director” within the
meaning of Rule 16b-3, as promulgated under the Exchange Act, an “outside director” within the meaning of section 162(m) of the Code, and an “independent director” under Section 303A of the New York Stock Exchange’s
Listed Company Manual, or any successors thereto. 
  

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 (n) Common Stock. “Common Stock” means the common stock of the Company,
par value $0.01 per share. 
 (o) Company. “Company” means Prudential Financial, Inc., a New Jersey
corporation, and any successor thereto. 
 (p) Corporate Event. “Corporate Event” means a merger,
consolidation, recapitalization or reorganization, share exchange, division, sale, plan of complete liquidation or dissolution, or other disposition of all or substantially all of the assets of the Company, which has been approved by the
shareholders of the Company. 
 (q) Covered Employees. “Covered Employees” are any Executive Officers or
other Eligible Individuals who are “covered employees” within the meaning of Code section 162(m). 
 (r)
Disability. “Disability” means with respect to any Participant, long-term disability (but not optional long-term disability coverage) as defined under the welfare benefit plan maintained by either the Company or a Subsidiary and in
which the Participant participates and from which the Participant is receiving a long-term disability benefit. In jurisdictions outside of the United States where long-term disability is covered by a mandatory or universal program sponsored by the
government or an industrial association, a Participant receiving long-term disability benefits from such a program is considered to meet the disability definition of the Plan. 
 (s) Dividends. “Dividends” means the regular cash dividends paid by the Company upon one share of Common Stock from time
to time. 
 (t) Dividend Equivalents. “Dividend Equivalents” means an amount equal to the regular cash
dividends paid by the Company upon one share of Common Stock in connection with the grant of Restricted Units, Performance Shares, Options, and/or SARs awarded to a Participant in accordance with Article VIII of the Plan. 
 (u) Domestic Partner. “Domestic Partner” means any person qualifying to be treated as a domestic partner of a Participant
under the applicable policies, if any, of the Company or Subsidiary that employs the Participant. 
 (v) Effective
Date. “Effective Date” generally means the first date upon which the Plan shall become effective, which will be the date the Plan has been both (a) approved by the Board on March 11, 2003, and (b) approved by a majority
of the votes cast at a duly held stockholders’ meeting (currently scheduled 

  

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for June 2003) at which the requisite quorum, as set forth in the Company’s Amended and Restated Certificate of Incorporation, of outstanding voting
stock of the Company is, either in person or by proxy, present and voting on the Plan. However, for purposes of any Option grant that is an ISO, the term “Effective Date” shall mean solely the adoption of the Plan by the Board. 

(w) Eligible Individual. For purposes of this Plan only, “Eligible Individual” means any individual who is either an
employee (including each officer) of, or an insurance agent (including, but not limited to, a common law employee, a statutory employee, or, for purposes of any non-domestic United States Subsidiary, any individual who is classified as a Life
Planner and/or Sales Manager and has the status of an “international independent contractor agent” who is characterized as an independent contractor for purposes of applicable local law) of, the Company or any such Subsidiary. 

(x) Exchange Act. “Exchange Act” means the Securities Exchange Act of 1934, as amended. 
 (y) Executive Officer. “Executive Officer” means each person who is an officer of the Company or any Subsidiary and who
is subject to the reporting requirements under Section 16(a) of the Exchange Act. 
 (z) Fair Market Value.
“Fair Market Value” means, on any date, the price of the last trade, regular way, in the Common Stock on such date on the New York Stock Exchange or, if at the relevant time, the Common Stock is not listed to trade on the New York Stock
Exchange, on such other recognized quotation system on which the trading prices of the Common Stock are then quoted (the “Applicable Exchange”). In the event that (i) there are no Common Stock transactions on the Applicable
Exchange on any relevant date, Fair Market Value for such date shall mean the closing price on the immediately preceding date on which Common Stock transactions were so reported and (ii) the Applicable Exchange adopts a trading policy
permitting trades after 5 P.M. Eastern Standard Time (“EST”), Fair Market Value shall mean the last trade, regular way, reported on or before 5 P.M. EST (or such earlier or later time as the Committee may establish from time to time).

 (aa) Family Member. “Family Member” means, as to a Participant, any (i) child, stepchild,
grandchild, parent, stepparent, grandparent, spouse, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law (including adoptive relationships), or Domestic Partner of such Participant,
(ii) trusts for the exclusive benefit of one or more such persons and/or the Participant and (iii) other entity owned solely by one or more such persons and/or the Participant. 
  

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 (bb) Financial Services Businesses. “Financial Services Businesses”
means the businesses in the Company’s three operating divisions of “Insurance,” “Investments” and “International Insurance and Investments,” as well as the Company’s “Corporate and Other” operations.

 (cc) Grandfathered Awards. “Grandfathered Awards” shall have the meaning set forth in Section 5.5
herein. 
 (dd) Incumbent Directors. “Incumbent Directors” means, with respect to any period of time
specified under the Plan for purposes of determining a Change of Control, the persons who were members of the Board at the beginning of such period. 
 (ee) ISO. “ISO” means an Option that is an “incentive stock option” within the meaning of Code section 422. 
 (ff) Long-Term Performance Unit Award. A “Long-Term Performance Unit Award” means an Award made pursuant to Article IX of
the Plan, which are units valued by reference to property other than Common Stock (including cash), the number or value of such units which may be adjusted over a Performance Cycle based on the satisfaction of Performance Goals. 
 (gg) Nonstatutory Stock Option. “Nonstatutory Stock Option” means an Option that is not an ISO. 
 (hh) Option (including ISOs and Nonstatutory Stock Options). “Option” means the right to purchase Common Stock at a
stated price for a specified period of time. For purposes of the Plan, an Option may be either (i) an ISO or (ii) a Nonstatutory Stock Option. 
 (ii) Participant. “Participant” shall have the meaning set forth in Article III of the Plan. 
 (jj) Performance Cycle. “Performance Cycle” means the period, not to exceed five (5) years, selected by the
Committee during which the performance of the Company or any Subsidiary or unit thereof or any individual is measured for the purpose of determining the extent to which an Award subject to Performance Goals has been earned. 
 (kk) Performance Goals. “Performance Goals” means the objectives for the Company, any Subsidiary or business unit
thereof, or an Eligible Individual that may be established by the Committee for a Performance Cycle with respect to any performance-based Awards contingently granted under the Plan. 
  

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 (ll) Performance Shares. “Performance Shares” means an Award made
pursuant to Article IX of the Plan, which are units denominated in Common Stock, the number of such units which may be adjusted over a Performance Cycle based upon the satisfaction of Performance Goals. 
 (mm) Person. “Person” means any person (within the meaning of Section 3(a)(9) of the Exchange Act), including any
group (within the meaning of Rule 13d-5(b) under the Exchange Act)), but excluding any of the Company, any Subsidiary or any employee benefit plan sponsored or maintained by the Company or any Subsidiary. 
 (nn) Plan Year. “Plan Year” means a period of twelve months commencing on January 1st and ending on the next December 31st. 
 (oo) Restricted Period. “Restricted Period” means the
period of time during which Restricted Units or shares of Restricted Stock are subject to forfeiture or restrictions on transfer (if applicable) pursuant to Article VIII of the Plan. 
 (pp) Restricted Stock. “Restricted Stock” means Common Stock awarded to a Participant pursuant to the Plan that is
subject to forfeiture and restrictions on transferability in accordance with Article VIII of the Plan. 
 (qq) Restricted
Unit. “Restricted Unit” means a Participant’s right to receive, pursuant to this Plan, one share of Common Stock at the end of a specified period of time, which right is subject to forfeiture in accordance with Article VIII of the
Plan. 
 (rr) SAR. “SAR” means a stock appreciation right granted under Article VII in respect of one or more
shares of Common Stock that entitles the holder thereof to receive, in cash or Common Stock, at the discretion of the Committee (which discretion may be exercised at or after grant, including after exercise of the SAR), an amount per share of Common
Stock equal to the excess, if any, of the Fair Market Value on the date the SAR is exercised over the Fair Market Value on the date the SAR is granted. 
 (ss) Stock Option Plan. “Stock Option Plan” means the Prudential Financial, Inc. Stock Option Plan, as amended from time to time. 
 (tt) Subsidiary. “Subsidiary” means any corporation or partnership in which the Company owns, directly or indirectly,
more than fifty percent (50%) of the total combined voting power of all classes of stock of such corporation or of the capital interest or profits interest of such partnership. 
  

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 (uu) Voting Power. A specified percentage of “Voting Power” of a company
means such number of the Voting Securities as shall enable the holders thereof to cast such percentage of all the votes which could be cast in an annual election of directors. 
 (vv) Voting Securities. “Voting Securities” means all securities of a company entitling the holders thereof to vote in an
annual election of directors. 
 Section 2.2 Gender and Number. Except when otherwise indicated by the context, words in the
masculine gender used in the Plan shall include the feminine gender, the singular shall include the plural, and the plural shall include the singular. 
 ARTICLE III 
 ELIGIBILITY AND PARTICIPATION 
 Section 3.1 Participants. Participants in the Plan shall be those Eligible Individuals designated by the affirmative action of the Committee
(or its delegate) to participate in the Plan. 
 Section 3.2 Types of Awards. The Committee (or its delegate) may grant any or
all of the Awards specified herein to any particular Participant (subject to the applicable limitations set forth in the Plan). Any Award may be made for one (1) year or multiple years without regard to whether any other type of Award is made
for the same year or years. 
 ARTICLE IV 
 POWERS OF THE COMMITTEE 
 Section 4.1 Power to Grant. The Committee shall have the
authority, subject to the terms of the Plan, to determine those Eligible Individuals to whom Awards shall be granted and the terms and conditions of any and all Awards including, but not limited to: 
 (a) the number of shares of Common Stock to be covered by each Award; 
 (b) the time or times at which Awards shall be granted; 
  

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 (c) the terms and provisions of the instruments by which Options may be evidenced,
including the designation of Options as ISOs or Nonstatutory Stock Options; 
 (d) the determination of the period of time
during which restrictions on Restricted Stock or Restricted Units shall remain in effect; 
 (e) the establishment and
administration of any Performance Goals applicable to Awards granted under the Plan; 
 (f) the determination of
Participants’ Long Term Performance Unit Awards or Performance Share Awards, including any Performance Goals and Performance Cycles; and 
 (g) the development and implementation of specific stock-based programs for the Company and its Subsidiaries that are consistent with the intent and specific terms of the framework created by this Plan. 
 Appropriate officers of the Company or any Subsidiary may suggest to the Committee the Eligible Individuals who should receive Awards, which the Committee may accept or
reject in its sole discretion. The Committee shall determine the terms and conditions of each Award at the time of grant. The Committee may establish different terms and conditions for different Participants and for the same Participant for each
Award such Participant may receive, whether or not granted at different times. 
 Section 4.2 Administration. 
 (a) Rules, Interpretations and Determinations. The Committee shall administer the Plan. Any Award granted by the Committee under
the Plan may be subject to such conditions, not inconsistent with the terms of the Plan, as the Committee shall determine. The Committee shall have full authority to interpret and administer the Plan, to establish, amend, and rescind rules and
regulations relating to the Plan, to provide for conditions deemed necessary or advisable to protect the interests of the Company, to construe the respective Award agreements and to make all other determinations necessary or advisable for the
administration and interpretation of the Plan in order to carry out its provisions and purposes. Determinations, interpretations, or other actions made or taken by the Committee shall be final, binding, and conclusive for all purposes and upon all
persons. 
 The Committee’s determinations under the Plan (including the determination of the Eligible Individuals to
receive Awards, the form, amount and timing of such Awards, the terms and provisions of such Awards and the agreements hereunder) may vary, and need not be uniform, whether or not any such Eligible Individuals could be deemed to be similarly
situated. 
  

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 (b) Agents and Expenses. The Committee may appoint agents (who may be officers or
employees of the Company) to assist in the administration of the Plan and may grant authority to such persons to execute agreements or other documents on its behalf. All expenses incurred in the administration of the Plan, including, without
limitation, for the engagement of any counsel, consultant or agent, shall be paid by the Company. The Committee may consult with legal counsel, who may be counsel to the Company, and shall not incur any liability for any action taken in good faith
in reliance upon the advice of counsel. Any proceeds received by the Company in connection with any Award will be used for general corporate purposes. 
 (c) Delegation of Authority. Notwithstanding anything else contained in the Plan to the contrary herein, the Committee may delegate, subject to such terms or conditions or guidelines as it shall determine, to
any employee of the Company or any group of employees of the Company or its affiliates any portion of its authority and powers under the Plan with respect to Participants who are not Executive Officers. Only the Committee may select, grant,
administer, or exercise any other discretionary authority under the Plan in respect of Awards granted to such Participants who are Executive Officers. 
 Section 4.3 409A Compliance. The Plan is intended to be administered in a manner consistent with the requirements, where applicable, of Section 409A of the Code. Where reasonably possible and
practicable, the Plan shall be administered in a manner to avoid the imposition on Eligible Individuals of immediate tax recognition and additional taxes pursuant to such Section 409A of the Code. To that end, and without limiting the
generality of the foregoing, unless otherwise expressly provided herein or in any Award agreement, any amount payable or shares distributable hereunder in connection with the vesting of any Award (including upon the satisfaction of any applicable
performance criteria) shall be paid not later than two and one-half months (or such other time as is required to cause such amounts not to be treated as deferred compensation under Section 409A of the Code) following the end of the taxable year
of the Company or the Eligible Individual in which the Eligible Individual’s rights with respect to the corresponding Award (or portion thereof) ceased to be subject to a substantial risk of forfeiture. Notwithstanding the foregoing, neither
the Company nor the Committee shall have any liability to any person in the event Section 409A of the Code applies to any Award in a manner that results in adverse tax consequences for the Eligible Individual or any of his or her beneficiaries
or transferees. 
 Section 4.4 Participants Based Outside the United States. Notwithstanding anything to the contrary herein, the
Committee, to conform with provisions of local laws 

  

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and regulations in foreign countries in which the Company or its Subsidiaries operate, shall have sole discretion to (a) modify the terms and conditions
of Awards granted to Participants employed outside the United States, (b) establish subplans with modified exercise procedures and such other modifications as may be necessary or advisable under the circumstances presented by local laws and
regulations; and (c) take any action which it deems advisable to obtain, comply with or otherwise reflect any necessary governmental regulatory procedures, exemptions or approvals with respect to the Plan or any subplan established hereunder.

 Section 4.5 Newly Eligible Participants. The Committee shall be entitled to make such rules, determinations and adjustments,
as it deems appropriate with respect to any Participant who becomes eligible to receive a performance-based Award after the commencement of a Performance Cycle. 
 Section 4.6 Restrictive Covenants and Other Conditions. Without limiting the generality of the foregoing, the Committee may condition the grant of any Award under the Plan upon the Participant to whom such
Award would be granted agreeing in writing to certain conditions in addition to the provisions regarding exercisability of the Award (such as restrictions on the ability to transfer the underlying shares of Common Stock) or covenants in favor of the
Company and/or one or more Subsidiaries (including, without limitation, covenants not to compete, not to solicit employees and customers and not to disclose confidential information) that may have effect during or following the termination of the
Participant’s employment with the Company and its Subsidiaries and before or after the Award has been exercised, including, without limitation, the requirement that the Participant disgorge any profit, gain or other benefit received in respect
of the exercise of the Award prior to any breach of any such covenant by the Participant). 
 Section 4.7 Performance Based
Compensation Interpretations; Limitations on Discretion. Notwithstanding anything contained in the Plan to the contrary, to the extent the Committee has required upon grant that any Annual Incentive Award, Long-Term Performance Unit Award,
Performance Share, Restricted Unit or Restricted Stock must qualify as “other performance based compensation” within the meaning of Section 162(m)(4)(c) of the Code, the Committee shall (a) specify and approve the specific terms
of any Performance Goals with respect to such Awards in writing no later than ninety (90) days from the commencement of the Performance Cycle to which the Performance Goal or Goals relate, and (b) not be entitled to exercise any subsequent
discretion otherwise authorized under the Plan (such as the right to authorize payout at a level above that dictated by the achievement of the relevant Performance Goals) with respect to such Award if the ability to exercise discretion (as opposed
to the exercise of such discretion) would cause such Award to fail to qualify as other performance based compensation. 
 Section 4.8
Indemnification. No member of the Committee shall be personally liable for any action, omission or determination relating to the Plan, and the Company shall 

  

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indemnify and hold harmless each member of the Committee and each other director or employee of the Company to whom any duty or power relating to the
administration or interpretation of the Plan has been delegated, against any cost or expense (including counsel fees) or liability (including any sum paid in settlement of a claim with the approval of the Committee) arising out of any action,
omission or determination related to the Plan, if, in either case, such member, director or employee made or took such action, omission, or determination in good faith and in a manner such person reasonably believed to be in or not opposed to the
best interests of the Company, and, with respect to any criminal action or proceeding, such person had no reasonable cause to believe his or her conduct was unlawful. 
 ARTICLE V 
 COMMON STOCK SUBJECT TO PLAN; OTHER LIMITATIONS 
 Section 5.1 Plan Limits. 
 (a) Shares Available for Awards: Subject to the provisions of Section 5.4, the number of shares of Common Stock issuable under the Plan for Awards shall be 50,000,000 plus any remaining shares of Common Stock available for
awards under the Stock Option Plan as of the effective date of the merger of the Stock Option Plan with this Plan. Any shares issued in connection with Options and SARs shall be counted against this limit as one (1) share for every one
(1) share issued; for Awards other than Options and SARs, any shares issued shall be counted against this limit as two (2) shares for every one (1) share issued. 
 (b) The shares to be delivered under the Plan may consist, in whole or in part, of Common Stock purchased by the Company for such purpose,
treasury Common Stock or authorized but unissued Common Stock, not reserved for any other purpose. 
 Section 5.2 Individual Award
Limitations. Subject to the provisions of Section 5.4, the following individual Award limits apply: 
 (a)
Options/SARs: During any three (3) year period, the total number of shares of Common Stock subject to Options and SARs awarded to any Participant may not exceed 2,500,000. 
 (b) Individual Performance-Based Limitations: To the extent that any Annual Incentive, Long-Term Performance Unit, Restricted
Stock, Restricted Unit and Performance Share Awards to a Participant are intended to satisfy the 

  

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requirements of Code section 162(m)(4)(C) as “other performance based compensation,” the maximum aggregate amount of such Award(s) paid or
otherwise made available to such Participant shall not exceed six-tenths of one percent (0.6%) of Adjusted Operating Income for the most recently reported year ending December 31st prior to the year such Award or Awards is or are paid or otherwise made available. 
 Section 5.3 Cancelled, Terminated, or Forfeited Awards. Should an Award under this Plan (including, for these purposes, any award under the
Stock Option Plan made prior to the Effective Date) for any reason expire without having been exercised, be cancelled, repurchased by the Company, terminated or forfeited or otherwise settled without the issuance of any Common Stock (including, but
not limited to, shares tendered to exercise outstanding Options, shares tendered or withheld for taxes on Awards or shares issued in connection with a Restricted Stock or Restricted Unit Award that are subsequently forfeited), any such shares of
Common Stock subject to such Award shall again be available for grants of Awards under the Plan. 
 Section 5.4 Adjustment in
Capitalization. In the event of any Adjustment Event, (a) the aggregate number of shares of Common Stock available for Awards under Section 5.1, (b) the aggregate limitations on the number of shares that may be awarded as a
particular type of Award or that may be awarded to any particular Participant in any particular period under Section 5.2 and (c) the aggregate number of shares subject to outstanding Awards and the respective exercise prices or base prices
applicable to outstanding Awards shall be appropriately adjusted by the Committee, in its discretion, with respect to such Adjustment Event, and the Committee’s determination shall be conclusive. To the extent deemed equitable and appropriate
by the Committee and subject to any required action by shareholders of the Company, in any Adjustment Event that is a merger, consolidation, reorganization, liquidation, dissolution or similar transaction, any Award granted under the Plan shall be
deemed to pertain to the securities and other property, including cash, to which a holder of the number of shares of Common Stock covered by the Award would have been entitled to receive in connection with such Adjustment Event. 
 Any shares of stock (whether Common Stock, shares of stock into which shares of Common Stock are converted or for which shares of Common Stock are exchanged or shares of
stock distributed with respect to Common Stock) or cash or other property received with respect to any award of Restricted Stock or Restricted Units granted under the Plan as a result of any Adjustment Event or any distribution of property shall,
except as provided in Article X or as otherwise provided by the Committee, be subject to the same terms and conditions, including restrictions on transfer, as are applicable to such shares of Restricted Stock or Restricted Units and any stock
certificate(s) representing or evidencing any shares of stock so received shall be legended in such manner as the Company deems appropriate. 
  

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 Section 5.5 Application of Limits. The limitations set forth under Sections 5.1 and 5.2
herein apply only to Awards both granted and payable to Participants after the Effective Date under this Plan (or, if made previously under the Stock Option Plan, subject to the limitations set forth in such Plan). With respect to any other
compensation or performance based awards previously made to Eligible Individuals prior to the Effective Date under some other compensation plan or program sponsored by the Company or its Subsidiaries, which become due or payable after the Effective
Date of this Plan (the “Grandfathered Awards”), the limitations set forth under Sections 5.1 and 5.2 will not be deemed to apply to such Grandfathered Award payments. 
 ARTICLE VI 
 STOCK OPTIONS 
 Section 6.1 Grant of Options. Subject to the provisions of Section 5.1, Options may be granted to Participants at such time or times as
shall be determined by the Committee. Options granted under the Plan may be of two types: (i) ISOs and (ii) Nonstatutory Stock Options. Except as otherwise provided herein, the Committee shall have complete discretion in
determining the number of Options, if any, to be granted to a Participant, except that ISOs may only be granted to Eligible Individuals who satisfy the requirements for eligibility set forth under Code section 424. The date of grant of an Option
under the Plan will be the date on which the Option is awarded by the Committee or, if so determined by the Committee, the date on which occurs any event (including, but not limited to, the completion of an individual or corporate Performance Goal)
the occurrence of which is an express condition precedent to the grant of the Option. Subject to Section 5.4, the Committee shall determine the number of Options, if any, to be granted to the Participant. Each Option grant shall be evidenced by
an Option agreement (in electronic or written form) that shall specify the type of Option granted, the exercise price, the duration of the Option, the number of shares of Common Stock to which the Option pertains, and such other terms and conditions
as the Committee shall determine which are not inconsistent with the provisions of the Plan. Options may be granted in tandem with SARs (as described in more detail in Article VII), and/or with associated Dividend Equivalents (as described in more
detail in Article VIII). 
 Section 6.2 Exercise Price; No Repricing or Substitution of Options. Nonstatutory Stock Options and
ISOs granted pursuant to the Plan shall have an exercise price no less than the Fair Market Value of a share of Common Stock on the date the Option is granted. Except as a result of any Adjustment Event, the Committee shall not 

  

 15 

 
have the power or authority to reduce, whether through amendment or otherwise, the exercise price of any outstanding Option nor to grant any new Options or
other Awards in substitution for or upon the cancellation of Options previously granted which shall have the effect of reducing the exercise price of any outstanding Option. 
 Section 6.3 Exercise of Options. Unless the Committee shall determine otherwise at the time of grant, one-third (1/3) of each Option
granted pursuant to the Plan shall become exercisable on each of the first three (3) anniversaries of the date such Option is granted; provided that the Committee may establish performance-based criteria for exercisability of any Option.
Subject to the provisions of this Article VI, once any portion of any Option has become exercisable it shall remain exercisable for its remaining term. Once exercisable, an Option may be exercised from time to time, in whole or in part, up to the
total number of shares of Common Stock with respect to which it is then exercisable. The Committee shall determine the term of each Option granted, but, except as expressly provided below, in no event shall any such Option be exercisable for more
than 10 years after the date on which it is granted. 
 Section 6.4 Payment. The Committee shall establish procedures governing
the exercise of Options. No shares shall be delivered pursuant to any exercise of an Option unless arrangements satisfactory to the Committee have been made to assure full payment of the exercise price therefore. Without limiting the generality of
the foregoing, payment of the exercise price may be made: (a) in cash or its equivalent; (b) by exchanging shares of Common Stock (which are not the subject of any pledge or other security interest) owned by the person
exercising the Option (through actual tender or by attestation); (c) through an arrangement with a broker approved by the Company whereby payment of the exercise price is accomplished with the proceeds of the sale of Common Stock; or
(d) by any combination of the foregoing; provided that the combined value of all cash and cash equivalents paid and the Fair Market Value of any such Common Stock so tendered to the Company, valued as of the date of such tender,
is at least equal to such exercise price. The Company may not make a loan to a Participant to facilitate such Participant’s exercise of any of his or her Options or payment of taxes. 
 Section 6.5 ISOs. Notwithstanding anything in the Plan to the contrary, no Option that is intended to be an ISO may be granted after the
tenth anniversary of the Effective Date of the Plan. Except as may otherwise be provided for under the provisions of Article X of the Plan, no term of this Plan relating to ISOs shall be interpreted, amended or altered, nor shall any discretion or
authority granted under the Plan be so exercised, so as to disqualify the ISO or the Plan under Section 422 of the Code, or, without the consent of any Participant affected thereby, to disqualify any ISO under such Section 422. 

 

 16 

 Section 6.6 Termination of Employment. Unless the Committee shall otherwise determine at or
subsequent to the date of grant: 
 (a) Death. In the event a Participant’s employment terminates due to his or
her death, any Options granted to such Participant that are then not yet exercised shall become immediately exercisable in full and may be exercised by the Participant’s estate (or as may otherwise be provided for in accordance with the
requirements of Section 12.2) at any time prior to the earlier of the (i) expiration date of the term of the Options or (ii) third (3rd) anniversary (or such earlier date as the Committee shall determine at the time of grant) of the Participant’s death; provided, however, that Nonstatutory Stock Options shall be
deemed to be amended to provide that they are exercisable for not less than one (1) year after a Participant’s death even if such period exceeds the expiration date of the term of the original grant of such Nonstatutory Stock Options.

 (b) Disability. In the event a Participant’s employment terminates due to Disability, any Options granted to
such Participant that are then not yet exercised shall become immediately exercisable in full and may be exercised by the Participant at any time prior to the expiration date of the term of the Options or within three (3) years (or such shorter
period as the Committee shall determine at the time of grant) following termination of the Participant’s employment, whichever period is shorter. 
 (c) Retirement. In the event a Participant’s employment terminates due to Approved Retirement, any Options granted to such Participant that are then not yet exercised shall become immediately exercisable
in full and may be exercised by the Participant at any time prior to the expiration date of the term of the Options or within five (5) years (or such shorter period as the Committee shall determine at the time of grant) following the
Participant’s Approved Retirement, whichever period is shorter. 
 (d) For Cause. In the event a
Participant’s employment is terminated for Cause, any Options granted to such Participant that are then not yet exercised shall be forfeited at the time of such termination and shall not be exercisable thereafter and the Committee may,
consistent with Section 4.6 of the Plan, require that such Participant disgorge any profit, gain or other benefit received in respect of the exercise of any such Options for a period of up to twelve (12) months prior to termination of the
Participant’s employment for Cause. The provisions of this Section 6.6(d) will apply notwithstanding any assertion (by the Participant or otherwise) of a termination of employment for any other reason enumerated under this
Section 6.6. 
 (e) Resignation. In the event a Participant’s employment terminates due to his or her
resignation from the Company or any Subsidiary, any Options granted to such Participant that are then not yet exercised shall be forfeited at the time of such termination and shall not be exercisable thereafter. 
  

 17 

 (f) Any Other Reason. In the event a Participant’s employment terminates due
to any reason other than one described in Section 6.6 (a) through (e), any Options granted to such Participant which are exercisable on the date of termination of the Participant’s employment may be exercised by the Participant at any
time prior to the expiration date of the term of the Options or the ninetieth (90th) day following termination
of the Participant’s employment, whichever period is shorter, and any Options that are not exercisable at the time of termination of employment shall be forfeited at the time of such termination and not be exercisable thereafter. 
 ARTICLE VII 
 STOCK APPRECIATION
RIGHTS (SARs) 
 Section 7.1 Grant of SARs. SARs may be granted to any Participants, all Participants or any class of
Participants at such time or times as shall be determined by the Committee. SARs may be granted in tandem with an Option, on a freestanding basis, not related to any other Award, and/or with associated Dividend Equivalents. A grant of a SAR shall be
evidenced in writing, whether as part of the agreement governing the terms of the Option, if any, to which such SARs relate or pursuant to a separate written agreement with respect to freestanding SARs, in each case containing such provisions not
inconsistent with the Plan as the Committee shall approve. 
 Section 7.2 Terms and Conditions of SARs. Notwithstanding the
provisions of Section 7.1, unless the Committee shall otherwise determine the terms and conditions (including, without limitation, the exercise period of the SAR, the vesting schedule applicable thereto and the impact of any termination of
service on the Participant’s rights with respect to the SAR) applicable with respect to (i) SARs granted in tandem with an Option shall be substantially identical (to the extent possible taking into account the differences related
to the character of the SAR) to the terms and conditions applicable to the tandem Options and (ii) freestanding SARs shall be substantially identical (to the extent possible taking into account the differences related to the character of
the SAR) to the terms and conditions that would have been applicable under Section 6 were the grant of the SARs a grant of an Option (including, but not limited to, the application of Section 6.6). 
 Section 7.3 Exercise of Tandem SARs. SARs that are granted in tandem with an Option may only be exercised upon the surrender of the right to
exercise such Option for an equivalent number of shares and may be exercised only with respect to the shares of Stock for which the related Award is then exercisable. 
  

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 Section 7.4 Payment of SAR Amount. Upon exercise of a SAR, the holder shall be entitled to
receive payment, in cash, in shares of Common Stock or in a combination thereof, as determined by the Committee, of an amount determined by multiplying: 
 (a) the excess, if any, of the Fair Market Value of a share of Stock at the date of exercise over the Fair Market Value of a share of Common Stock on the date of grant, by 
 (b) the number of shares of Common Stock with respect to which the SARs are then being exercised; 
 provided, however, that at the time of grant with respect to any SAR payable in cash, the Committee may establish, in its sole discretion, a maximum amount per
share which will be payable upon the exercise of such SAR. 
 ARTICLE VIII 
 RESTRICTED STOCK, RESTRICTED UNITS AND DIVIDEND EQUIVALENTS 
 Section 8.1 Grant of Restricted Stock and Restricted Units. The Committee, in its sole discretion, may make Awards to Participants of Restricted Stock or Restricted Units. Any Award made hereunder of Restricted Stock or
Restricted Units shall be subject to the terms and conditions of the Plan and to any other terms and conditions not inconsistent with the Plan (including, but not limited to, requiring the Participant to pay the Company an amount equal to the par
value per share for each share of Restricted Stock awarded) as shall be prescribed by the Committee in its sole discretion, either at the time of grant or thereafter. As determined by the Committee, with respect to an Award of Restricted Stock, the
Company shall either (i) transfer or issue to each Participant to whom an award of Restricted Stock has been made the number of shares of Restricted Stock specified by the Committee or (ii) hold such shares of Restricted Stock for the
benefit of the Participant for the Restricted Period. In the case of an Award of Restricted Units, no shares of Common Stock shall be issued at the time an Award is made, and the Company shall not be required to set aside a fund for the payment of
such Award. Dividends or Dividends Equivalents (if connected with the grant of Restricted Units) may be subject to the same terms and conditions as the underlying Award of Restricted Stock or Restricted Units. 
  

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 Section 8.2 Grant, Terms and Conditions of Dividend Equivalents. The Committee, in its sole
discretion, may make Awards to Participants of Dividend Equivalents in connection with the grant of Restricted Units, Options, SARs and/or Performance Shares. Unless the Committee shall otherwise determine, the terms and conditions (including,
without limitation, the vesting schedule applicable thereto and the impact of any termination of service on the Participant’s rights with respect to the Dividend Equivalent) shall be substantially identical (to the extent possible taking into
account the differences related to the character of the Dividend Equivalent) to the terms and conditions applicable to the associated Award. 
 Section 8.3 Restrictions On Transferability. Shares of Restricted Stock and Restricted Units may not be sold, assigned, transferred, pledged, hypothecated or otherwise encumbered by the Participant during the Restricted Period,
except as hereinafter provided. Notwithstanding the foregoing, the Committee may permit (on such terms and conditions as it shall establish) shares of Restricted Stock and Restricted Units to be transferred during the Restricted Periods pursuant to
Section 12.1, provided that any shares of Restricted Stock or Restricted Units so transferred shall remain subject to the provisions of this Article VIII. 
 Section 8.4 Rights as a Shareholder. Except for the restrictions set forth herein and unless otherwise determined by the Committee, the Participant shall have all the rights of a shareholder with respect
to such shares of Restricted Stock, including but not limited to, the right to vote and the right to receive dividends. A Participant shall not have any right, in respect of Restricted Units or Dividend Equivalents awarded pursuant to the Plan, to
vote on any matter submitted to the Company’s stockholders until such time as the shares of Common Stock attributable to such Restricted Units (and, if applicable, Dividend Equivalents) have been issued. 
 Section 8.5 Restricted Period. Unless the Committee shall otherwise determine at the date an Award of Restricted Stock or Restricted Units
(including any Dividend Equivalents issued in connection with such Restricted Units) is made to the Participant by the Committee, the Restricted Period shall commence upon the date of grant by the Committee and shall lapse with respect to the shares
of Restricted Stock or Restricted Units on the third (3rd) anniversary of the date of grant, unless sooner
terminated as otherwise provided herein. 
 Section 8.6 Legending or Equivalent. To the extent that certificates are issued to a
Participant in respect of shares of Restricted Stock awarded under the Plan (or in the event that such Restricted Stock are held electronically), such shares shall be registered in the name of the Participant and shall have such legends (or account
restrictions) reflecting the restrictions of such Awards in such manner as the Committee may deem appropriate. 
  

 20 

 Section 8.7 Termination of Employment. Unless the Committee shall otherwise determine at or
subsequent to the date of grant: 
 (a) Death. In the event a Participant’s employment terminates due to his or
her death, the Restricted Period will lapse as to the outstanding shares of Restricted Stock and/or Restricted Units (including any associated Dividend Equivalents) granted to such Participant under the Plan. A lump sum payment of cash or Common
Stock shall be made in respect of Restricted Units as soon as practicable following the Participant’s termination of employment. 
 (b) Disability. In the event a Participant’s employment terminates due to Disability, the Restricted Period will lapse as to the outstanding shares of Restricted Stock and/or Restricted Units (including
any associated Dividend Equivalents) granted to such Participant under the Plan. A lump sum payment of cash or Common Stock shall be made in respect of Restricted Units as soon as practicable following the Participant’s termination of
employment. 
 (c) Approved Retirement. In the event a Participant’s employment terminates due to Approved
Retirement, the Restricted Period will lapse as to the outstanding shares of Restricted Stock and/or Restricted Units (including any associated Dividend Equivalents) granted to such Participant under the Plan. Payment in respect of any vested
Restricted Stock Units shall be made as soon as practicable following termination of the Participant’s employment, except that, if the Participant is a specified employee within the meaning of Section 409A of the Code, such payment shall
be made six months and one day following the date of such termination of employment. 
 (d) For Cause. In the event a
Participant’s employment is terminated for Cause, all outstanding shares of Restricted Stock and/or Restricted Units (including any associated Dividend Equivalents) granted to such Participant under the Plan shall be forfeited at the time of
such termination, and the Committee may, consistent with Section 4.6 of the Plan, require that such Participant disgorge any profit, gain or other benefit received in respect of the lapse of restrictions on any prior grant of Restricted Stock
or Restricted Units (including any Dividend Equivalents) for a period of up to twelve (12) months prior to the Participant’s termination of employment for Cause. The provisions of this Section 8.7(d) will apply notwithstanding any
assertion (by the Participant or otherwise) of a termination of employment for any other reason enumerated under this Section 8.7. 
 (e) Resignation. In the event a Participant’s employment terminates due to his or her resignation from the Company or any Subsidiary, all outstanding shares of Restricted Stock and/or Restricted Units
(including any associated Dividend Equivalents) granted to such Participant under the Plan shall be forfeited upon termination of the Participant’s employment. 
  

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 (f) Any Other Reason. In the event a Participant’s employment terminates due
to any reason other than one described in Section 8.7(a) through (e), the Participant shall receive a payment calculated in the following manner: (i) the number of shares of Restricted Stock and/or Restricted Units granted to such
Participant under the Plan will be reduced by multiplying the grant by a fraction, the numerator of which is the number of full months in the applicable vesting period during which the Participant was an active employee and the denominator of which
is the number of months in the applicable vesting period (with a partial month worked shall be counted as a full month if the Participant is an active employee for 15 days or more in that month); and (ii) the resulting reduced number of
Restricted Stock or Restricted Units shall be considered vested and payment of such pro-rated Awards is to be made to the Participant as soon as practicable after termination of the Participant’s employment. 
 Section 8.8 Issuance of New Certificate or Equivalent; Settlement of Restricted Units and Dividend Equivalents. Upon the lapse of the
Restricted Period with respect to any shares of Restricted Stock, such shares shall no longer be subject to the restrictions imposed under Section 8.3 and the Company shall issue or have issued new share certificates (or remove any such
restrictions that may have been established electronically) without the legend or equivalent described in Section 8.6 in exchange for those previously issued. Upon the lapse of the Restricted Period with respect to any Restricted Units, the
Company shall deliver to the Participant, or the Participant’s beneficiary or estate, as provided in Section 12.2, one share of Common Stock for each Restricted Unit as to which restrictions have lapsed and any Dividend Equivalents
credited with respect to such Restricted Units and any interest thereon. The Committee may, in its sole discretion, elect to pay cash or part cash and part Common Stock in lieu of delivering only Common Stock for Restricted Units and/or Dividend
Equivalents. If a cash payment is made in lieu of delivering Common Stock for Restricted Units, the amount of such cash payment for each share of Common Stock to which a Participant is entitled shall be equal to the Fair Market Value of the Common
Stock on the date on which the Restricted Period lapsed with respect to the related Restricted Unit. 
  

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 ARTICLE IX 
 ANNUAL INCENTIVE AWARDS, 
 LONG-TERM PERFORMANCE UNIT AWARDS 
 AND PERFORMANCE SHARE AWARDS 
 Section 9.1 Annual Incentive Awards. 
 (a) General Description. At the direction of the
Committee, Annual Incentive Awards may be made to Participants and, unless determined otherwise by the Committee at or after the date of grant, shall be paid in cash. 
 (b) Requirements for Covered Employees. For any Covered Employees and to the extent the Committee intends to comply with the
requirements for performance-based Awards described generally under Code section 162(m), the Committee must certify, prior to payment of any such amounts, that any applicable Performance Goals and/or other requirements have been satisfied, and that
such amounts are consistent with the limits provided under Section 5.2(b). 
 (c) Payment of Annual Incentive
Awards. Unless the Committee determines otherwise either at grant or thereafter, in the event a Participant terminates employment before the end of an annual Performance Cycle due to death, Disability, or Approved Retirement, such Participant,
or his or her estate, shall be eligible to receive a prorated Annual Incentive Award based on (a) in the case of death or Disability, full achievement of the Participant’s Performance Goals for such Performance Cycle, and (b) in the
case of Approved Retirement, the actual achievement of the Performance Goals for such Performance Cycle , in each case prorated for the portion of the Performance Cycle completed before the Participant’s termination of employment. If a
Participant terminates employment before payment of an Annual Incentive Award is authorized by the Committee for any reason other than death, Disability or Approved Retirement, the Participant shall forfeit all rights to such Annual Incentive Award
unless otherwise determined by the Committee. 
 Section 9.2 Long-Term Performance Unit Awards. 
 (a) General Description. At the discretion of the Committee, grants of Long-Term Performance Unit Awards may be made to
Participants. 
 (b) Requirements for Covered Employees. For any Covered Employees and to the extent the Committee
intends to comply with the 

  

 23 

 
requirements for performance-based Awards described generally under Code section 162(m), the Committee must certify, prior to payment of any such amounts,
that any applicable Performance Goals and/or other requirements have been satisfied, and that such amounts paid are consistent with the limits provided under Section 5.2(b). 
 (c) Payment of Long-Term Performance Unit Awards. Long-Term Performance Unit Awards shall be payable in cash, Common Stock, or a
combination of cash and Common Stock at the discretion of the Committee. Unless the Committee shall otherwise determine at or subsequent to the date of grant: 
 (i) Death. In the event a Participant’s employment terminates due to his or her death during the applicable Performance Cycle,
the Participant’s estate or beneficiaries will receive as soon as practicable following such termination of employment a lump sum payment of the outstanding Long-Term Performance Unit Award granted to such Participant under the Plan, calculated
as if the target value or equivalent value for each Unit had, in fact, been achieved. 
 (ii) Disability. In the event
a Participant’s employment terminates due to Disability during the applicable Performance Cycle, the Participant will receive as soon as practicable following such termination of employment a lump sum payment of the outstanding Long-Term
Performance Unit Award granted to such Participant under the Plan, calculated as if the target value or equivalent value for each Unit had, in fact, been achieved. 
 (iii) Approved Retirement. In the event a Participant’s employment terminates due to Approved Retirement during the applicable
Performance Cycle, the Participant shall receive a payment calculated in the following manner: (i) the number of Long-Term Performance Units granted to such Participant under the Plan will be reduced by multiplying the grant by a fraction, the
numerator of which is the number of full months in the Performance Cycle during which the Participant was an active employee and the denominator of which is the number of months in the Performance Cycle (with a partial month worked shall be counted
as a full month if the Participant is an active employee for 15 days or more in that month); and (ii) the resulting reduced number of Long-Term Performance Units shall be considered vested and payment made to the Participant in a lump sum on
the 60th day after the completion of the respective Performance Cycle. 
  

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 (iv) For Cause. In the event a Participant’s employment is terminated for
Cause, all outstanding Long-Term Performance Unit Awards shall be cancelled and the Committee may, consistent with Section 4.6 of the Plan, require that such Participant disgorge any profit, gain or other benefit received in respect of the
payment of any prior Long-Term Performance Unit Awards received within a period of twelve (12) months prior to termination of the Participant’s employment for Cause. The provisions of this Section 9.2(c)(iv) will apply notwithstanding
any assertion (by the Participant or otherwise) of a termination of employment for any other reason enumerated under this Section 9.2. 
 (v) Resignation. In the event a Participant’s employment terminates due to his or her resignation from the Company or any Subsidiary, all outstanding Long-Term Performance Units granted to such Participant
under the Plan shall be forfeited upon termination of the Participant’s employment. 
 (vi) Any Other Reason. In
the event a Participant’s employment terminates during the applicable Performance Cycle due to any reason other than one described in Section 9.2(c)(i) through (v), the Participant shall receive a payment calculated in the following
manner: (i) the number of Long-Term Performance Units granted to such Participant under the Plan will be reduced by multiplying the grant by a fraction, the numerator of which is the number of full months in the Performance Cycle during which
the Participant was an active employee and the denominator of which is the number of months in the Performance Cycle (with a partial month worked shall be counted as a full month if the Participant is an active employee for 15 days or more in that
month); and (ii) the resulting reduced number of Long-Term Performance Units shall be considered vested and payment made to the Participant of a lump sum payment as soon as practicable following such termination of employment of such pro-rated
Long-Term Performance Unit Award, calculated as if the target value or equivalent value for each Unit had, in fact, been achieved. 
 Section 9.3 Performance Shares. 
 (a) General Description. At the discretion of the Committee,
grants of Performance Share Awards may be made to Participants. 
 (b) Requirements for Covered Employees. For any
Covered Employees and to the extent the Committee intends to comply with the requirements for performance-based Awards described generally under Code 

  

 25 

 
section 162(m), the Committee must certify, prior to payment of any such amounts, that any applicable Performance Goals and/or other requirements have been
satisfied, and that such amounts paid are consistent with the limits provided under Section 5.2(b). 
 (c) Payment of
Performance Share Awards. Performance Share Awards shall be payable in Common Stock. Unless the Committee shall otherwise determine at or subsequent to the date of grant: 
 (i) Death. In the event a Participant’s employment terminates due to his or her death during the applicable Performance Cycle,
the Participant’s estate or beneficiaries will receive as soon as practicable following such termination of employment a lump sum payment of the outstanding Performance Share Award granted to such Participant under the Plan, calculated as if
the target number of Performance Shares had, in fact, been earned. 
 (ii) Disability. In the event a
Participant’s employment terminates due to Disability during the applicable Performance Cycle, the Participant will receive as soon as practicable following such termination of employment a lump sum payment of the outstanding Performance Share
Award granted to such Participant under the Plan, calculated as if the target number of Performance Shares had, in fact, been earned. 
 (iii) Approved Retirement. In the event a Participant’s employment terminates due to Approved Retirement during the applicable Performance Cycle, the Participant shall receive a payment calculated in the
following manner: (i) the number of Performance Shares granted to such Participant under the Plan will be reduced by multiplying the grant by a fraction, the numerator of which is the number of full months in the Performance Cycle during which
the Participant was an active employee and the denominator of which is the number of months in the Performance Cycle (with a partial month worked shall be counted as a full month if the Participant is an active employee for 15 days or more in that
month); and (ii) the resulting reduced number of Performance Shares shall be considered vested and payment made to the Participant in a lump sum 60 days after the completion of the respective Performance Cycle. 
 (iv) For Cause. In the event a Participant’s employment is terminated for Cause, all outstanding Performance Share Awards
shall be cancelled and the Committee may, consistent with Section 4.6 of the Plan, require that such Participant disgorge any profit, gain or other benefit received in respect of the payment of any prior Performance Share Awards 

  

 26 

 
received within a period of twelve (12) months prior to termination of the Participant’s employment for Cause. The provisions of this
Section 9.3(c)(iv) will apply notwithstanding any assertion (by the Participant or otherwise) of a termination of employment for any other reason enumerated under this Section 9.3. 
 (v) Resignation. In the event a Participant’s employment terminates due to his or her resignation from the Company or any
Subsidiary, all outstanding Performance Share Awards granted to such Participant under the Plan shall be forfeited upon termination of the Participant’s employment. 
 (vi) Any Other Reason. In the event a Participant’s employment terminates during the applicable Performance Cycle due to any
reason other than one described in Section 9.3(c)(i) through (v), the Participant shall receive a payment calculated in the following manner: (i) the number of Performance Shares granted to such Participant under the Plan will be reduced
by multiplying the grant by a fraction, the numerator of which is the number of full months in the Performance Cycle during which the Participant was an active employee and the denominator of which is the number of months in the Performance Cycle
(with a partial month worked shall be counted as a full month if the Participant is an active employee for 15 days or more in that month); and (ii) the resulting reduced number of Performance Shares shall be considered vested and payment made
to the Participant of a lump sum payment as soon as practicable following such termination of employment of such pro-rated Performance Share Award, calculated as if the target number of Performance Shares had, in fact, been earned. 
 ARTICLE X 
 CHANGE OF CONTROL

 Section 10.1 Accelerated Vesting and Payment of Awards. Unless determined otherwise by the Committee and subject to
the provisions of Section 10.3, in the event of a Change of Control each Option and SAR then outstanding shall be fully exercisable regardless of the exercise schedule otherwise applicable to such Option and/or SAR, and the Restricted Period
shall lapse as to each share of Restricted Stock and each Restricted Unit then outstanding. In connection with such a Change of Control, the Committee may, in its sole discretion, provide that each Option, SAR, Restricted Stock and/or Restricted

  

 27 

 
Unit shall, upon the occurrence of such Change of Control, be cancelled in exchange for a payment per share/unit (the “Settlement Payment”) in an
amount based on the Change of Control Price. Such Settlement Payment shall be in the form of cash. 
 Section 10.2 Long Term
Performance Unit Awards and Performance Share Awards. Unless determined otherwise by the Committee and subject to the provisions of Section 10.3, in the event of a Change of Control, (a) any outstanding Long Term Performance Unit
Awards or Performance Share Awards relating to Performance Cycles ending prior to the Change of Control which have been earned but not paid shall become immediately payable, (b) all then-in-progress Performance Cycles for Long Term Performance
Unit Awards or Performance Share Awards that are outstanding shall end, and all Participants shall be deemed to have earned an award equal to the Participant’s target award opportunity for the Performance Cycle in question, (c) the Company
shall pay all such Long Term Performance Unit Awards as a Settlement Payment in cash within thirty (30) days of such Change in Control, based on the Change in Control Price and (d) the Company may, in its sole discretion and on such terms
and conditions as it deems appropriate, pay all such Performance Share Awards either (i) in Common Stock and/or (ii) as a Settlement Payment in cash within thirty (30) days of such Change of Control, based on the Change of Control
Price. 
 Section 10.3 Alternative Awards. Notwithstanding Section 10.1 or 10.2, no cancellation, acceleration of
exercisability, vesting, cash settlement or other payment shall occur with respect to any Option, SAR, Restricted Stock, Restricted Unit, Long-Term Performance Unit and/or Performance Share if the Committee reasonably determines in good faith prior
to the occurrence of a Change of Control that such Option, SAR, Restricted Stock, Restricted Unit, Long-Term Performance Unit and/or Performance Share shall be honored or assumed, or new rights substituted therefore (such honored, assumed or
substituted award hereinafter called an “Alternative Award”), by a Participant’s employer (or the parent or an affiliate of such employer) immediately following the Change of Control; provided that any such Alternative Award
must: 
 (a) be based on stock that is traded on an established securities market; 
 (b) provide such Participant with rights and entitlements substantially equivalent to or better than the rights, terms and conditions
applicable under such Option, SAR, Restricted Stock, Restricted Unit, Long-Term Performance Unit and/or Performance Share, including, but not limited to, an identical or better exercise or vesting schedules; 
 (c) have substantially equivalent value to such Option, SAR, Restricted Stock, Restricted Unit, Long-Term Performance Unit and/or
Performance Share (determined at the time of the Change in Control); and 
  

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 (d) have terms and conditions which provide that in the event that the Participant’s
employment is involuntarily terminated for any reason other than for Cause, all of such Participant’s Options, SARs, Restricted Stock, Restricted Units, Long-Term Performance Units and/or Performance Shares shall be deemed immediately and fully
exercisable and/or all restrictions shall lapse, and shall be settled for a payment per each share of stock subject to the Alternative Award in cash, in immediately transferable, publicly traded securities, or in a combination thereof, in an amount
equal to (i) the Fair Market Value of such stock on the date of the Participant’s termination (with respect to any Restricted Stock, and/or Restricted Units), (ii) the excess of the Fair Market Value of such stock on the date of the
Participant’s termination over the corresponding exercise or base price per share, if any (with respect to any Option and/or SARs), or (iii) the Participant’s target award opportunity for the Performance Cycle in question (with
respect to any Long-Term Performance Units or Performance Shares). 
 ARTICLE XI 
 AMENDMENT, MODIFICATION, AND TERMINATION OF PLAN 
 Section 11.1 General. The Board may, at any time and from time to time amend, modify, suspend, or terminate this Plan, in whole or in part, without notice to or the consent of any participant or employee;
provided, however, that any amendment which would (i) increase the number of shares available for issuance under the Plan, (ii) lower the minimum exercise price at which an Option (or the base price at which a
SAR) may be granted or (iii) change the individual Award limits shall be subject to the approval of the Company’s shareholders. No amendment, modification or termination of the Plan shall in any manner adversely affect any Award
theretofore granted under the Plan, without the consent of the Participant, provided, however, that 
 (a) any change
pursuant to, and in accordance with the requirements of, Article X; 
 (b) any acceleration of payments of amounts accrued
under the Plan by action of the Committee or by operation of the Plan’s terms; or 
 (c) any decision by the Committee to
limit participation (or other features of the Plan) prospectively under the Plan 
 shall not be deemed to violate this provision. 
  

 29 

 ARTICLE XII 
 MISCELLANEOUS PROVISIONS 
 Section 12.1 Transferability of Awards. No Awards
granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution; provided that the Committee may, in the Award agreement or otherwise,
permit transfers of Nonstatutory Stock Options with or without tandem SARs, freestanding SARs, Restricted Stock and Restricted Units to Family Members (including, without limitation, transfers effected by a domestic relations order). 
 Section 12.2 Treatment of Any Outstanding Rights or Features Upon Participant’s Death. Any Awards, rights or features remaining
unexercised or unpaid at the Participant’s death shall be paid to, or exercised by, the Participant’s estate except where otherwise provided by law, or when done in accordance with other methods (including a beneficiary designation
process) put in place by the Committee or a duly appointed designee from time to time. Except as otherwise provided herein, nothing in this Plan is intended or may be construed to give any person other than Participants any options, rights or
remedies under this Plan. 
 Section 12.3 Deferral of Payment. The Committee may, in the Award agreement or otherwise, permit a
Participant to elect, upon such terms and conditions as the Committee may establish, to defer receipt of shares of Common Stock that would otherwise be issued upon exercise or vesting of an Award. Notwithstanding anything else contained herein to
the contrary, deferrals shall not be permitted hereunder in a way that will result in the Company or any Subsidiary being required to recognize a financial accounting charge due to such deferral that is substantially greater than the charge, if any,
that was associated with the underlying Award. 
 Section 12.4 Awards In Substitution for Awards Granted By Other Companies.
Awards may be granted under the Plan from time to time as replacements for awards (including, but not limited to, options, common stock, restricted stock, performance shares or performance units) held by employees of other companies who become
Employees of the Company or of any Subsidiary as a result of a merger or consolidation of the employing company with the Company, or such Subsidiary, or the acquisition by the Company or a Subsidiary of all or a portion of the assets of the
employing company. Shares issued in connection with such substitute Awards shall not reduce the number of shares of Common Stock issuable under Section 5.1 of the Plan. 
 Section 12.5 No Guarantee of Employment or Participation. The existence of the Plan shall not be deemed to constitute a contract of
employment between the 

  

 30 

 
Company or any affiliate and any Eligible Individual or Participant, nor shall it constitute a right to remain in the employ of the Company or any affiliate.
The terms or existence of this Plan, as in effect at any time or from time to time, or any Award granted under the Plan, shall not interfere with or limit in any way the right of the Company or any Subsidiary to terminate any Participant’s
employment at any time, nor confer upon any Participant any right to continue in the employ of the Company or any Subsidiary or any other affiliate of the Company. Each employee of the Company or any Subsidiary remains at will. Except to the extent
expressly selected by the Committee to be a Participant, no person (whether or not an Eligible Individual or a Participant) shall at any time have a right to be selected for (or additional) participation in the Plan, despite having previously
participated in an incentive or bonus plan of the Company or an affiliate. 
 Section 12.6 Tax Withholding. The Company,
Subsidiary or an affiliate shall have the right and power to deduct from all payments or distributions hereunder, or require a Participant to remit to the Company promptly upon notification of the amount due, an amount (which may include shares of
Common Stock) to satisfy any federal, state, local or foreign taxes or other obligations required by law to be withheld with respect thereto with respect to any Award. The Company may defer payments of cash or issuance or delivery of Common Stock
until such withholding requirements are satisfied. The Committee may, in its discretion, permit a Participant to elect, subject to such conditions as the Committee shall impose, (a) to have shares of Common Stock otherwise issuable under
the Plan withheld by the Company or (b) to deliver to the Company previously acquired shares of Common Stock (through actual tender or attestation), in either case for the greatest number of whole shares having a Fair Market Value on the
date immediately preceding the date of exercise not in excess of the amount required to satisfy the withholding tax obligations. 
 Section 12.7 No Limitation on Compensation; Scope of Liabilities. Nothing in the Plan shall be construed to limit the right of the Company to establish other plans if and to the extent permitted by applicable law. The liability
of the Company, Subsidiary or any affiliate under this Plan is limited to the obligations expressly set forth in the Plan, and no term or provision of this Plan may be construed to impose any further or additional duties, obligations, or costs on
the Company or any affiliate thereof or the Committee not expressly set forth in the Plan. 
 Section 12.8 Requirements of Law.
The granting of Awards and the issuance of shares of Common Stock shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 Section 12.9 Term of Plan. The Plan shall be effective upon the Effective Date. The Plan shall terminate on the earlier of (a) the
termination of the Plan pursuant to Article XI, or (b) when no more shares are available for issuance of Awards under the Plan. 
  

 31 

 Section 12.10 Governing Law. The Plan, and all agreements hereunder, shall be construed in
accordance with and governed by the laws of the State of New Jersey, without regard to principles of conflict of laws. 
 Section 12.11
Securities Law Compliance. Instruments evidencing Awards may contain such other provisions, not inconsistent with the Plan, as the Committee deems advisable, including a requirement that the Participant represent to the Company in writing,
when an Award is granted or when he receives shares with respect to such Award (or at such other time as the Committee deems appropriate) that he is accepting such Award, or receiving or acquiring such shares (unless they are then covered by a
Securities Act of 1933 registration statement), for his own account for investment only and with no present intention to transfer, sell or otherwise dispose of such shares except such disposition by a legal representative as shall be required by
will or the laws of any jurisdiction in winding up the estate of the Participant. Such shares shall be transferable, or may be sold or otherwise disposed of only if the proposed transfer, sale or other disposition shall be permissible pursuant to
the Plan and if, in the opinion of counsel satisfactory to the Company, such transfer, sale or other disposition at such time will be in compliance with applicable securities laws. 
 Section 12.12 No Impact On Benefits. Except as may otherwise be specifically provided for under any employee benefit plan, policy or program
provision to the contrary, Awards shall not be treated as compensation for purposes of calculating an Eligible Individual’s right under any such plan, policy or program. 
 Section 12.13 No Constraint on Corporate Action. Except as provided in Article XI, nothing contained in this Plan shall be construed to
prevent the Company, or any affiliate, from taking any corporate action (including, but not limited to, the Company’s right or power to make adjustments, reclassifications, reorganizations or changes of its capital or business structure, or to
merge or consolidate, or dissolve, liquidate, sell, or transfer all or any part of its business or assets) which is deemed by it to be appropriate, or in its best interest, whether or not such action would have an adverse effect on this Plan, or any
Awards made under this Plan. No employee, beneficiary, or other person, shall have any claim against the Company, any Subsidiary, or any of its affiliates, as a result of any such action. 
 Section 12.14 Captions. The headings and captions appearing herein are inserted only as a matter of convenience. They do not define, limit,
construe, or describe the scope or intent of the provisions of the Plan. 
  

 32 

 Section 12.15 Distribution of Amounts Subject to Section 409A. Notwithstanding anything
in the Plan to the contrary, if any amount that is subject to Section 409A of the Code is to be paid or distributed solely on account of a Change of Control (as opposed to being paid or distributed on account of termination of employment or
within a reasonable time following the lapse of any substantial risk of forfeiture with respect to the corresponding Award), solely for purposes of determining whether such distribution or payment shall be made in connection with a Change of
Control, the term Change of Control shall be deemed to be defined in the manner provided in Section 409A of the Code and the regulations thereunder. If any such distribution or payment cannot be made because an event that constitutes a Change
of Control under the Plan is not a change of control as defined under Section 409A of the Code, then such distribution or payment shall be distributed or paid at the next event, occurrence or date at which such distribution or payment could be
made in compliance with the requirements of Section 409A of the Code. 
  

 33Exchange Agreement, dated as of October 6, 2006

 Exhibit 10.1 
 EXCHANGE AGREEMENT 
 BY AND BETWEEN 
 BCE INC. 
 AND 
 SKYTERRA COMMUNICATIONS, INC. 
 Dated as of October 6, 2006

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	ARTICLE I
	
	PURCHASE AND SALE
			
	 Section 1.1
	  	 Sale of TMI Delaware Interests and SkyTerra Shares
	  	1
	 Section 1.2
	  	 Closing
	  	1
	 Section 1.3
	  	 Deliveries
	  	1
	
	ARTICLE II
	
	REPRESENTATIONS AND WARRANTIES OF BCE
			
	 Section 2.1
	  	 Corporate Organization; Related Entities
	  	3
	 Section 2.2
	  	 Title to TMI Delaware Interests
	  	4
	 Section 2.3
	  	 Authority Relative to this Agreement
	  	4
	 Section 2.4
	  	 Consents and Approvals; No Violations
	  	5
	 Section 2.5
	  	 Absence of Certain Changes or Events
	  	5
	 Section 2.6
	  	 Litigation
	  	6
	 Section 2.7
	  	 Purchase Entirely for Own Account
	  	6
	 Section 2.8
	  	 Reliance Upon BCE’s Representations
	  	6
	 Section 2.9
	  	 Receipt of Information
	  	6
	 Section 2.10
	  	 Investor Status; etc.
	  	6
	 Section 2.11
	  	 Taxes
	  	7
	 Section 2.12
	  	 Brokers or Finders
	  	7
	 Section 2.13
	  	 Restricted Securities
	  	8
	 Section 2.14
	  	 Legends
	  	8
	
	ARTICLE III
	
	REPRESENTATIONS AND WARRANTIES OF SKYTERRA
			
	 Section 3.1
	  	 Corporate Organization; Related Entities
	  	8
	 Section 3.2
	  	 Capitalization.
	  	9
	 Section 3.3
	  	 Authority Relative to this Agreement and the Registration Rights Agreement
	  	10
	 Section 3.4
	  	 Consents and Approvals; No Violations
	  	10
	 Section 3.5
	  	 Reports and Financial Statements
	  	10
	 Section 3.6
	  	 Absence of Certain Changes or Events
	  	11
	 Section 3.7
	  	 Litigation
	  	12
	 Section 3.8
	  	 Compliance with Law
	  	12
	 Section 3.9
	  	 Absence of Undisclosed Liabilities
	  	12
	 Section 3.10
	  	 No Default
	  	12
	 Section 3.11
	  	 Taxes
	  	13

  

 i 

					
	 Section 3.12
	  	 Intellectual Property
	  	13
	 Section 3.13
	  	 Permits
	  	14
	 Section 3.14
	  	 Brokers
	  	14
	 Section 3.15
	  	 Contracts
	  	14
	 Section 3.16
	  	 Insurance
	  	14
	 Section 3.17
	  	 Ownership of MSV LP Units and MSV GP Shares
	  	15
	 Section 3.18
	  	 Purchase Entirely for Own Account
	  	15
	 Section 3.19
	  	 Reliance Upon SkyTerra’s Representations
	  	15
	 Section 3.20
	  	 Receipt of Information
	  	15
	 Section 3.21
	  	 Investor Status; etc.
	  	15
	 Section 3.22
	  	 Restricted Securities
	  	16
	 Section 3.23
	  	 Issuances Exempt
	  	16
	 Section 3.24
	  	 No Integrated Offering
	  	16
	
	ARTICLE IV
	
	ADDITIONAL AGREEMENTS
			
	 Section 4.1
	  	 Governmental Approval
	  	16
	 Section 4.2
	  	 Blue Sky Laws
	  	17
	 Section 4.3
	  	 Compliance with MSV Documents
	  	17
	 Section 4.4
	  	 No Transfers; No Alternative Transactions; Standstill
	  	18
	 Section 4.5
	  	 TMI Delaware Assets
	  	19
	 Section 4.5A
	  	 Contests; Transfer Taxes
	  	20
	 Section 4.6
	  	 MSV Options
	  	22
	 Section 4.7
	  	 Commercially Reasonable Efforts
	  	23
	 Section 4.8
	  	 Exchange of SkyTerra Non-Voting Common Stock for SkyTerra Common Stock
	  	23
	 Section 4.9
	  	 MSV Canada Interests and Restriction on Transfer of SkyTerra Shares
	  	23
	 Section 4.10
	  	 Public Announcements
	  	24
	 Section 4.11
	  	 Prohibited Actions; Appropriate Adjustments
	  	24
	 Section 4.12
	  	 SkyTerra Change of Control
	  	25
	 Section 4.13
	  	 BCE Right to Designate Directors to MSV GP
	  	25
	 Section 4.14
	  	 Preservation of TMI Delaware Status as Limited Partnership
	  	26
	
	ARTICLE V
	
	CONDITIONS TO CLOSING OF SKYTERRA
			
	 Section 5.1
	  	 Representations and Warranties
	  	26
	 Section 5.2
	  	 Performance
	  	26
	 Section 5.3
	  	 Intentionally Omitted
	  	26
	 Section 5.4
	  	 Opinion of BCE’s Counsel
	  	27
	 Section 5.5
	  	 Certificates and Documents
	  	27
	 Section 5.6
	  	 Compliance Certificate
	  	27
	 Section 5.7
	  	 Intentionally Omitted
	  	27
	 Section 5.8
	  	 Intentionally Omitted
	  	27

  

 ii 

					
	 Section 5.9
	  	 Board of Directors
	  	27
	 Section 5.10
	  	 Intentionally Omitted
	  	27
	
	ARTICLE VI
	
	CONDITIONS TO CLOSING OF BCE
			
	 Section 6.1
	  	 Intentionally Omitted
	  	27
	 Section 6.2
	  	 Performance
	  	27
	 Section 6.3
	  	 Intentionally Omitted
	  	27
	 Section 6.4
	  	 Opinion of Company’s Counsel
	  	28
	 Section 6.5
	  	 Certificates and Documents
	  	28
	 Section 6.6
	  	 Intentionally Omitted
	  	28
	 Section 6.7
	  	 Intentionally Omitted
	  	28
	 Section 6.8
	  	 Intentionally Omitted
	  	28
	 Section 6.9
	  	 Cash Balance
	  	28
	 Section 6.10
	  	 Intentionally Omitted
	  	28
	
	ARTICLE VII
	
	INDEMNIFICATION
			
	 Section 7.1
	  	 Survival of Representations and Warranties
	  	28
	 Section 7.2
	  	 Obligation to Indemnify
	  	28
	 Section 7.3
	  	 Indemnification Procedures
	  	30
	 Section 7.4
	  	 Notices and Payments
	  	31
	 Section 7.5
	  	 Limited Remedy
	  	31
	
	ARTICLE VIII
	
	MISCELLANEOUS
			
	 Section 8.1
	  	 Termination
	  	32
	 Section 8.2
	  	 Survival
	  	32
	 Section 8.3
	  	 Expenses
	  	33
	 Section 8.4
	  	 Counterparts; Effectiveness
	  	33
	 Section 8.5
	  	 Governing Law
	  	33
	 Section 8.6
	  	 Notices
	  	33
	 Section 8.7
	  	 Assignment; Binding Effect
	  	34
	 Section 8.8
	  	 Severability
	  	34
	 Section 8.9
	  	 Entire Agreement; Non-Assignability; Parties in Interest
	  	34
	 Section 8.10
	  	 Headings
	  	34
	 Section 8.11
	  	 Certain Definitions
	  	34
	 Section 8.12
	  	 Amendments and Waivers
	  	35
	 Section 8.13
	  	 Specific Performance
	  	35
	 Section 8.14
	  	 Exclusive Jurisdiction
	  	35
	 Section 8.15
	  	 Waiver of Jury Trial
	  	36

  

 iii 

			
	Schedule A	  	SkyTerra Disclosure Schedule
	Schedule B	  	Other Exchange Agreements
	Exhibit A	  	Form of Amendment No. 4 to the Amended and Restated Stockholders Agreement of Mobile Satellite Ventures GP, Inc.
	Exhibit B	  	Form of Amendment No. 1 to the Amended and Restated Limited Partnership Agreement of Mobile Satellite Ventures LP
	Exhibit C	  	Intentionally Omitted
	Exhibit D	  	Form of Pledge Release Agreement
	Exhibit E	  	Form of MSV Canada Amendment
	Exhibit F	  	Form of Registration Rights Agreement
	Exhibit G	  	Form of Consent Agreement
	Exhibit H	  	Form of Letter Agreement
	Exhibit I	  	Matters to be Covered by Legal Opinions of Counsel to BCE
	Exhibit J	  	Form of Non-Interference Agreement
	Exhibit K	  	Matters to be Covered by Legal Opinion of Counsel to SkyTerra
	Exhibit L	  	Form of Preferred Provider Termination Agreement
	Exhibit M	  	Form of Mutual Release Letter Agreement
	Exhibit N	  	Form of Preferred Provider Extension Agreement

  

 iv 

 EXCHANGE AGREEMENT 
 THIS EXCHANGE AGREEMENT (this “Agreement”) is made and entered into as of October 6, 2006 by and between BCE Inc., a business corporation incorporated under the laws of Canada
(“BCE”), and SkyTerra Communications, Inc., a Delaware corporation (“SkyTerra”). 
 ARTICLE
I 
 PURCHASE AND SALE 
 Section 1.1 Sale of TMI Delaware Interests and SkyTerra Shares. Subject to the terms and conditions hereof and in reliance upon the representations, warranties and agreements contained herein, at the Closing (as defined below),
SkyTerra will purchase from BCE and/or its designated subsidiaries and BCE shall sell and/or cause to be sold to SkyTerra, (a) 100% of the outstanding limited partnership interests (the “TMI Delaware LP Interests”) and
(b) 100% of the outstanding general partnership interests (“TMI Delaware GP Interests” and, together with the TMI Delaware LP Interests, the “TMI Delaware Interests”) of TMI Communications Delaware, Limited
Partnership (“TMI Delaware”), a Delaware limited partnership wholly-owned by BCE and its subsidiaries, in exchange for 21,393,355 shares (the “SkyTerra Shares”) of non-voting common stock, par value
$0.01 per share (“SkyTerra Non-Voting Common Stock”), of SkyTerra, exchangeable in certain circumstances for an equal number of shares of SkyTerra Common Stock (as defined below), in each case as appropriately adjusted for
any stock split, combination, reorganization, recapitalization, reclassification, stock dividend, stock distribution or similar event declared or effected prior to the Closing; provided, that no adjustment shall be made for the exchanges made
pursuant to the Agreements listed on Schedule B hereto (the “Other Exchange Agreements”). 
 Section 1.2
Closing. The closing (the “Closing”) of the purchase and sale of the TMI Delaware Interests in exchange for the SkyTerra Shares shall be held at the offices of Skadden, Arps, Slate, Meagher & Flom LLP, Four
Times Square, New York, New York and shall be effective as of 11:59 p.m., New York City time, (a) on the first business day immediately following the day on which the last to be fulfilled or waived of the conditions set forth in Articles V and
VI (other than those conditions that by their nature are to be satisfied at the Closing, but subject to fulfillment or waiver of those conditions), shall be fulfilled or waived in accordance herewith, except that BCE may delay the Closing until a
date no later than January 5, 2007; or (b) at such other time, date or place as BCE and SkyTerra may agree in writing. The date on which the Closing occurs is hereinafter referred to as the “Closing Date.”

 Section 1.3 Deliveries. (a) Simultaneously with the execution of this Agreement, BCE (and the directors of MSV GP (as defined
herein) designated by BCE, with respect to the Consent Agreement (as defined below)) shall execute and deliver, and BCE shall cause TMI Delaware to execute and deliver, 

 
and MSV Investors, LLC shall execute and deliver, to the extent applicable and not previously executed and delivered; (i) Amendment No. 2 to the
TerreStar Networks Inc. Stockholders’ Agreement in the form attached as Exhibit A to the Motient Exchange Agreement (as defined below), (ii) the Amended and Restated TerreStar Networks Inc. Stockholders’ Agreement in the form attached
as Exhibit B to the Motient Exchange Agreement (the “Amended TerreStar Stockholders’ Agreement”), both (i) and (ii) to be effective in accordance with their terms, (iii) Amendment No. 3 to the Amended
and Restated Stockholders Agreement (the “MSV GP Stockholders’ Agreement”) of Mobile Satellite Ventures GP, Inc. (“MSV GP”) in the form attached as Exhibit C to the Motient Exchange Agreement,
(iv) Amendment No. 4 to the MSV GP Stockholders Agreement, in the form attached as Exhibit A hereto, (v) Amendment No. 1 to the Amended and Restated Limited Partnership Agreement (the “MSV LP Partnership
Agreement”) of Mobile Satellite Ventures LP (“MSV”), in the form attached as Exhibit B hereto, (vi) a Pledge Release Agreement terminating the Pledge and Guarantee Agreement dated
November 26, 2001 as amended, releasing the pledge thereunder and releasing TMI Delaware of any liability that could arise in connection therewith, in the form of Exhibit D hereto, (vii) an amendment (the “MSV Canada
Amendment”) to the shareholders agreement of Mobile Satellite Ventures Holdings (Canada) Inc. (the “MSV Canada Shareholders Agreement”) in the form of Exhibit E hereto duly executed by the subsidiary of
BCE which is a party to such agreement (viii) the Amended and Restated Registration Rights Agreement in the form attached as Exhibit F hereto (the “Registration Rights Agreement”), (ix) the Consent Agreement
in the form attached as Exhibit G hereto (the “Consent Agreement”), (x) the Letter Agreement in the form attached as Exhibit H hereto (the “Letter Agreement” and together with the
Consent Agreement, the “Signing Letters”), (xi) the Termination of the Preferred Provider Agreement in the form attached as Exhibit L hereto (the “Termination of the Preferred Provider
Agreement”), (xii) the Non-Interference Agreement in the form attached as Exhibit J hereto (the “Non-Interference Agreement”), (xiii) the Mutual Release Letter Agreement in the form attached as
Exhibit M hereto (the “Mutual Release Letter Agreement”) and (xiv) the Preferred Provider Termination and Extension Agreement in the form attached as Exhibit N here to (the “Preferred Provider
Extension Agreement”). 
 (b) At the Closing, BCE shall deliver or cause to be delivered to SkyTerra (unless
waived by SkyTerra) the following (collectively, the “BCE Closing Deliveries”): 
 (i) duly executed
instruments of assignment evidencing the transfer of the TMI Delaware Interests to SkyTerra and/or one or more wholly-owned subsidiaries of SkyTerra as designated by SkyTerra and in such form reasonably satisfactory to SkyTerra as shall be effective
to vest in SkyTerra and/or such SkyTerra subsidiaries good and valid title to the TMI Delaware Interests, free and clear of any Lien (as defined below) other than Permitted Liens (as defined below), Securities Law Encumbrances (as defined below) or
pursuant to the MSV Documents (as defined below); 
 (ii) certified resolutions of the Board of Directors of BCE and the
partners of TMI Delaware approving this Agreement, the Registration Rights Agreement and the transactions contemplated hereby; 
  

 2 

 (iii) a certificate of good standing for each of BCE and TMI Delaware from their
respective jurisdictions of organization; 
 (iv) a copy of a statement, issued by TMI Delaware pursuant to Treasury
Regulation section 1.897-2(h) (including a copy of any statement filed with the Internal Revenue Service pursuant to Treasury Regulation section 1.897-2(h)(2)), in form and substance reasonably satisfactory to SkyTerra, certifying that the TMI
Delaware Interests are not “United States real property interests” as defined in section 897(c) of the Internal Revenue Code of 1986, as amended (it being agreed that TMI Delaware will, for purposes of making this certification, rely on
SkyTerra’s representation to the effect that the MSV Interests are not “United States real property interests” as so defined, determined as if MSV were a U.S. corporation, and will have no liability to SkyTerra, under this Agreement
or otherwise, if the certification is incorrect as a result of inaccuracy of that representation); and 
 (v) an agreement
terminating the MSV GP Stockholders Agreement duly executed by TMI Delaware. 
 (c) At the Closing, SkyTerra shall deliver to
BCE (unless waived by BCE) the following (collectively, the “SkyTerra Closing Deliveries”): 
 (i)
certificates registered in the names of BCE and/ or its designated subsidiaries representing the SkyTerra Shares; 
 (ii)
certified resolutions of SkyTerra’s Board of Directors approving this Agreement, the Registration Rights Agreement and the transactions contemplated hereby; 
 (iii) a certificate of good standing for SkyTerra from the Secretary of State of the State of Delaware; and 
 (iv) an agreement terminating the MSV GP Stockholders Agreement duly executed by MSV Investors, LLC. 
 ARTICLE II 
 REPRESENTATIONS AND
WARRANTIES OF BCE 
 BCE represents and warrants to SkyTerra, as follows: 
 Section 2.1 Corporate Organization; Related Entities. BCE is a business corporation duly organized, validly existing and in good standing under
the laws of Canada and TMI Delaware is a limited partnership duly organized, validly existing and in good standing under the laws of the State of Delaware, and both BCE and TMI Delaware have the requisite power and authority to own or lease their
respective properties and to carry on their respective businesses as they are presently being conducted. Each of BCE and TMI Delaware is 

  

 3 

 
duly qualified to do business as a foreign entity, and is in good standing, in each jurisdiction in which the ownership of their respective properties or the
conduct of their respective business requires such qualification, except for failures, if any, to be so qualified which individually or in the aggregate have not had and could not reasonably be expected to have a BCE Material Adverse Effect. The
copies of the certificates of incorporation and bylaws or other applicable organizational documents of BCE and TMI Delaware heretofore made available to SkyTerra are complete and current copies of such instruments as presently in effect. A
“BCE Material Adverse Effect” means a material adverse effect respecting the ability of BCE to consummate the transactions contemplated by this Agreement or fulfill the conditions to Closing set forth herein, except to the
extent that such adverse effect results from (i) general economic, regulatory or political conditions or changes therein in the United States or the other countries in which such party operates; (ii) financial or securities market
fluctuations or conditions; or (iii) changes in, or events or conditions affecting, the wireless telecommunications industry generally. 
 Section 2.2 Title to TMI Delaware Interests. As of the date hereof and at all times until and including at the Closing, BCE, directly or through one or more wholly-owned subsidiaries, owns, of record and beneficially, the TMI
Delaware Interests, and TMI Delaware owns, of record and beneficially, the 7,586,296.24 limited partnership units (the “MSV LP Units”) of MSV and 758.63 shares of common stock (the “MSV GP Shares” and,
together with the MSV LP Units, the “MSV Interests”) of MSV GP owned by TMI Delaware, in each case free and clear of any and all option, call, contract, commitment, mortgage, pledge, security interest, encumbrance, lien, Tax,
claim or charge of any kind or right of others of whatever nature (collectively, a “Lien”) of any kind, other than pursuant to statutory Liens for Taxes not yet due and payable and other Liens created by operation of law of a
type ordinarily excluded from clauses of this nature (collectively, “Permitted Liens”), applicable securities laws (“Securities Law Encumbrances”) or the MSV Documents (defined below). Upon the
Closing, (x) SkyTerra shall be vested with good and valid title to the TMI Delaware Interests and TMI Delaware shall continue to have good and valid title to the MSV Interests, free and clear of any Liens of any kind (other than Permitted
Liens, Securities Law Encumbrances or the MSV Documents) and (y) neither BCE nor any of its affiliates shall own, of record or beneficially, or have, by conversion, warrant, option or otherwise, any right to, interest in or agreement to acquire
any TMI Delaware LP Interests, TMI Delaware GP Interests, MSV LP Units or MSV GP Shares. The “MSV Documents” means the Amended and Restated Limited Partnership Agreement dated as of November 12, 2004, the Amended and
Restated Stockholders’ Agreement dated as of November 12, 2004, the Voting Agreement dated as of November 12, 2004, the bylaws of MSV GP, the Second Amended and Restated Parent Transfer/Drag Along Agreement dated as of
November 12, 2004, and the MSV Canada Shareholders Agreement, as each of the same may be amended from time to time. 
 Section 2.3
Authority Relative to this Agreement. BCE and its subsidiaries, as applicable, have the requisite power and authority to execute and deliver this Agreement, the Registration Rights Agreement and the Governance Amendments, as applicable, and
to consummate the transactions contemplated hereby. The execution and delivery of this Agreement, the Registration Rights Agreement and the Governance Amendments by BCE and its subsidiaries, as applicable, and the consummation by BCE and its
subsidiaries of 

  

 4 

 
the transactions contemplated hereby and thereby have been duly authorized by BCE’s and the applicable subsidiaries’ respective boards of
directors, or other governing bodies or general partners, as the case may be, and no other corporate, partnership, stockholder or partner proceedings on the part of BCE or its subsidiaries are necessary to authorize this Agreement, the Registration
Rights Agreement and the Governance Amendments, as applicable, or for BCE or its subsidiaries, as applicable, to consummate the transactions contemplated hereby or thereby. This Agreement, the Registration Rights Agreement and the Governance
Amendments have been duly and validly executed and delivered by BCE and its subsidiaries, as applicable, and, assuming the due authorization, execution and delivery thereof by the other parties thereto, constitutes the valid and binding obligations
of such of BCE and its subsidiaries as are parties thereto, enforceable against them in accordance with its terms. 
 Section 2.4 Consents
and Approvals; No Violations. Except in connection with or in order to comply with the applicable provisions of (a) the filing of a registration statement pursuant to the Registration Rights Agreement, under the Securities Act of 1933, as
amended (the “Securities Act”) and (b) filings or approvals required under state securities or “blue sky” laws, neither the execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, will conflict with, or result in any violation of, or default under (with or without notice or lapse of time, or both), or give rise to a right of termination, cancellation or acceleration of any obligation or loss of a benefit
under (i) any provision of the organizational documents of BCE or any of its subsidiaries involved in the transactions contemplated by this Agreement, (ii) any material mortgage, indenture, lease, contract or other agreement or instrument,
permit, concession, franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to BCE or any of such subsidiaries (including TMI Delaware) or their respective properties or assets, including, but not limited
to, the MSV Documents. Except in connection or in order to comply with the applicable provisions of (a) the filing of a registration statement pursuant to the Registration Rights Agreement, under the Securities Act and (b) filings or
approvals required under state securities or “blue sky” laws, no consent, approval, order or authorization of, or registration, declaration or filing with, any federal, state, local or foreign court, arbitral tribunal, administrative
agency or commission or other governmental or other regulatory body, authority or administrative agency or commission (collectively, a “Governmental Entity”), is required by or with respect to BCE or any of its subsidiaries
(including TMI Delaware) in connection with the execution and delivery of this Agreement by BCE or the consummation by BCE or any subsidiary of BCE of the transactions contemplated hereby, except for such consents, authorizations, filings, approvals
and registrations which, if not obtained or made, would not have a BCE Material Adverse Effect. 
 Section 2.5 Absence of Certain Changes
or Events. Since December 31, 2005, (i) BCE and TMI Delaware have conducted their respective businesses and operations in the ordinary course of business and consistent with past practices and (ii) there has not been any fact,
event, circumstance or change affecting or relating to BCE or TMI Delaware which has had or could reasonably be expected to have a BCE Material Adverse Effect. 
  

 5 

 Section 2.6 Litigation. As of the date hereof, there is no suit, action, proceeding or
investigation pending or, to the knowledge of BCE, threatened against BCE or TMI Delaware or with respect to which BCE or TMI Delaware could be required to provide indemnification or to otherwise contribute to liabilities or damages relating
thereto, the outcome of which has had or could reasonably be expected to have a BCE Material Adverse Effect; nor is there any judgment, decree, injunction, rule or order of any Governmental Entity outstanding against BCE or TMI Delaware having, or
which has had or could reasonably be expected to have a BCE Material Adverse Effect. 
 Section 2.7 Purchase Entirely for Own Account.
The SkyTerra Shares (and the shares of SkyTerra Common Stock into which such shares are exchangeable) to be issued to BCE will be acquired for investment for BCE’s own account, not as a nominee or agent, and not with a view to the resale or
distribution of any part thereof, in each case, in violation of applicable securities laws, and BCE has no present intention of selling, granting any participation in, or otherwise distributing such SkyTerra Shares except in compliance with
applicable securities laws. 
 Section 2.8 Reliance Upon BCE’s Representations. BCE understands that the SkyTerra Shares issued
to BCE in accordance with this Agreement will not be registered under the Securities Act and the sale provided for in this Agreement and SkyTerra’s issuance of the SkyTerra Shares hereunder will be made in reliance upon an exemption from
registration under the Securities Act pursuant to Section 4(2) thereof, and that, in such case, SkyTerra’s reliance on such exemption will be based on BCE’s representations set forth herein. 
 Section 2.9 Receipt of Information. BCE believes it has received all the information it considers necessary or appropriate for deciding whether to
acquire the SkyTerra Shares. BCE further represents that it has had an opportunity to ask questions and receive answers from SkyTerra regarding the terms and conditions of the offering of the SkyTerra Shares and the business and financial condition
of SkyTerra and to obtain additional information (to the extent SkyTerra possessed such information or could acquire it without unreasonable effort or expense) necessary to verify the accuracy of any information furnished to it or to which it had
access. The foregoing, however, does not limit or modify the representations or warranties of SkyTerra in this Agreement or the right of BCE to rely upon such representations or warranties. BCE has not received, nor is it relying on, any
representations or warranties from SkyTerra, other than as provided herein; provided, that the foregoing shall not affect any right BCE may have on account of fraud. 
 Section 2.10 Investor Status; etc. BCE certifies and represents to SkyTerra that it is an “accredited investor” as defined in Rule 501
of Regulation D promulgated under the Securities Act and was not organized for the purpose of acquiring the SkyTerra Shares. BCE’s financial condition is such that it is able to bear the risk of holding the SkyTerra Shares for an indefinite
period of time and the risk of loss of its entire investment. BCE has sufficient knowledge and experience in investing in companies similar to SkyTerra so as to be able to evaluate the risks and merits of its investment in SkyTerra. 
  

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 Section 2.11 Taxes. 
 (a) TMI Delaware has timely filed all Tax Returns required to be filed by it (taking into account all applicable extensions) and all such
Tax Returns are true, correct and complete in all respects. 
 (b) TMI Delaware has paid all Taxes required to have been paid
by it. TMI Delaware has no liability for Taxes of any Person other than TMI Delaware. 
 (c) There is no pending, or to the
knowledge of TMI Delaware threatened, examination, investigation, audit, suit, action, claim or proceeding relating to Taxes of TMI Delaware. 
 (d) TMI Delaware has not received written notice of a determination by any taxing or other Governmental Entity that Taxes are owed by TMI Delaware (such determination being referred to as a “Tax
Deficiency”) and, to the knowledge of TMI Delaware, no Tax Deficiency is proposed or threatened. 
 (e) All Tax
Deficiencies asserted against TMI Delaware have been paid or finally settled and all amounts asserted in any Tax Deficiency to be owed have been paid. 
 (f) There are no Liens arising from or related to Taxes on or pending against TMI Delaware or any of its properties other than statutory Liens for Taxes that are not yet due and payable. 
 (g) As used in this Agreement: 
 (i) “Tax” means any and all federal, state, local, foreign or other tax of any kind (together with any and all interest, penalties, additions to tax and additional amounts imposed with respect
thereto) imposed by any Tax Authority, including taxes on or with respect to income, alternative minimum, accumulated earnings, personal holding company, capital, transfer, stamp, franchises, windfall or other profits, gross receipts, property,
sales, use, capital stock, payroll, employment, unemployment, social security, workers’ compensation or net worth, and taxes in the nature of excise, withholding, ad valorem or value added; and 
 (ii) “Tax Return” means any return, report or similar statement (including any attached schedules) required to be
filed with respect to Taxes and any information return, claim for refund, amended return, or declaration of estimated Taxes. 
 Section 2.12
Brokers or Finders. Except for fees which shall be borne solely by BCE, none of BCE or any of its subsidiaries (including TMI Delaware) has incurred, nor will either of them incur, directly or indirectly, any 

  

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liability for brokerage or finders’ fees or agents’ commissions or investment bankers’ fees or any similar charges in connection with this
Agreement or any transaction contemplated hereby. 
 Section 2.13 Restricted Securities. BCE understands that the SkyTerra Shares may
not be sold, transferred or otherwise disposed of without registration under the Securities Act or an exemption therefrom, and that in the absence of an effective registration statement covering the SkyTerra Shares or an available exemption from
registration under the Securities Act, the SkyTerra Shares must be held indefinitely. In particular, BCE is aware that the SkyTerra Shares may not be sold pursuant to Rule 144 or Rule 145 promulgated under the Securities Act unless all of the
conditions of the applicable rule are met. Among the conditions for use of Rules 144 and 145 is the availability of current information to the public about SkyTerra. 
 Section 2.14 Legends. It is understood that the certificates evidencing the SkyTerra Shares to be sold to BCE will bear one or more of the following legends: 
 (a) “These securities have not been registered under the Securities Act of 1933, as amended. They may not be sold, offered for sale,
pledged or hypothecated in the absence of a registration statement in effect with respect to the securities under such Act or an opinion of counsel satisfactory to SkyTerra Communications, Inc. that such registration is not required.”

 (b) With respect to any SkyTerra Shares comprising the Minimum Linked Number (as defined herein) a legend stating that such
SkyTerra Shares may not be transferred other than in accordance with the MSV Canada Amendment. 
 (c) Any legend required by
the laws of the State of Delaware or other jurisdiction. 
 ARTICLE III 
 REPRESENTATIONS AND WARRANTIES OF SKYTERRA 
 Except as otherwise
specifically provided in the Disclosure Schedule of SkyTerra attached hereto and incorporated herein by reference which clearly identifies the relevant section of this Agreement (the “SkyTerra Disclosure Schedule”), SkyTerra
represents and warrants to BCE as follows: 
 Section 3.1 Corporate Organization; Related Entities. SkyTerra is a corporation duly
organized, validly existing and in good standing under the laws of the State of Delaware and has the requisite corporate power and authority to own or lease its properties and to carry on its business as it is presently being conducted. SkyTerra is
duly qualified to do business as a foreign corporation, and is in good standing, in each jurisdiction in which the ownership of its properties or the conduct of its business requires such qualification, 

  

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except for failures, if any, to be so qualified which individually or in the aggregate have not had and could not reasonably be expected to have a SkyTerra
Material Adverse Effect. The copies of the certificate of incorporation and bylaws of SkyTerra heretofore made available to BCE are complete and current copies of such instruments as presently in effect. A “SkyTerra Material Adverse
Effect” means a material adverse effect respecting (a) the business, assets and liabilities (taken together) or financial condition of SkyTerra and its subsidiaries on a consolidated basis or (b) the ability of SkyTerra to
consummate the transactions contemplated by this Agreement or fulfill the conditions to Closing set forth herein, except to the extent (in the case of either clause (a) or clause (b) above) that such adverse effect results from
(i) general economic, regulatory or political conditions or changes therein in the United States or the other countries in which such party operates; (ii) financial or securities market fluctuations or conditions; or (iii) changes in,
or events or conditions affecting, the wireless telecommunications industry generally. 
 Section 3.2 Capitalization. 
 (a) As of the date of this Agreement, the authorized capital stock of SkyTerra consists of (i) 200,000,000 shares of SkyTerra’s
common stock, par value $0.01 per share (the “SkyTerra Common Stock”), 26,564,206 of which are issued and outstanding, (ii) 100,000,000 shares of SkyTerra Non-Voting Common Stock, 37,696,716 of which are issued and
outstanding, and (iii) 10,000,000 shares of preferred stock, par value $0.01 per share (“SkyTerra Preferred Stock”), 2,000,000 of which are designated as Series A Convertible Preferred Stock and none of which are issued
and outstanding. SkyTerra has no other designations of SkyTerra Preferred Stock. As of the date of this Agreement, (1) 935,544 shares of SkyTerra Common Stock are reserved for issuance pursuant to SkyTerra’s stock option plans (each a
“SkyTerra Stock Option Plan”) or otherwise, a list of which is set forth on Schedule 3.2 of the SkyTerra Disclosure Schedule, (2) 2,879,498 shares of SkyTerra Common Stock are reserved for issuance upon the
exercise of outstanding warrants to purchase shares of SkyTerra Common Stock and (3) 18,855,144 shares of SkyTerra Non-Voting Common Stock and 18,855,144 shares of SkyTerra Common Stock are reserved for issuance pursuant to the agreement listed
on Part A of Schedule B hereto (the “Motient Exchange Agreement”) upon the occurrence of Subsequent Closings (as defined in the Motient Exchange Agreement). The issuances of shares of SkyTerra Common Stock and SkyTerra
Non-Voting Common Stock contemplated in clauses (1) through (3) above are referred to herein collectively as the “SkyTerra Permitted Issuances”. All the issued and outstanding shares of SkyTerra’s capital stock
have been duly authorized and validly issued and are fully paid, nonassessable and free of statutory preemptive rights and contractual stockholder preemptive rights, with no personal liability attaching to the ownership thereof. Except for the
SkyTerra Permitted Issuances, SkyTerra (A) does not have and is not bound by any outstanding subscriptions, options, voting trusts, convertible securities, warrants, calls, commitments or agreements of any character or kind calling for the
purchase, issuance or grant of any additional shares of its capital stock or restricting the transfer of its capital stock and (B) is not a party to any voting trust or other agreement or understanding with respect to the voting of the capital
stock or other equity securities of SkyTerra. 
 (b) The SkyTerra Shares have been duly and validly authorized, and, when
issued upon the terms hereof, will be fully paid, nonassessable and free of statutory 

  

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preemptive rights and contractual stockholder preemptive rights, with no personal liability attaching to the ownership thereof. 
 Section 3.3 Authority Relative to this Agreement and the Registration Rights Agreement. SkyTerra has the requisite corporate power and authority
to execute and deliver this Agreement, and the Registration Rights Agreement and to consummate the transactions contemplated hereby and thereby. The execution and delivery of this Agreement and the Registration Rights Agreement by SkyTerra and the
consummation by SkyTerra of the transactions contemplated hereby and thereby have been duly authorized by SkyTerra’s Board of Directors, and no other corporate or stockholder proceedings on the part of SkyTerra are necessary to authorize this
Agreement or the Registration Rights Agreement or for SkyTerra to consummate the transactions contemplated hereby or thereby. This Agreement and the Registration Rights Agreement have been duly and validly executed and delivered by SkyTerra and,
assuming the due authorization, execution and delivery thereof by BCE and any of its subsidiaries party thereto, constitute the valid and binding obligations of SkyTerra, enforceable against SkyTerra in accordance with their terms. 
 Section 3.4 Consents and Approvals; No Violations. Except in connection or in order to comply with the applicable provisions of (a) the
filing of a registration statement pursuant to the Registration Rights Agreement, under the Securities Act and (b) filings or approvals required under state securities or “blue sky” laws, neither the execution and delivery of this
Agreement, nor the consummation of the transactions contemplated hereby will, conflict with, or result in any violation of, or default under (with or without notice or lapse of time, or both), or give rise to a right of termination, cancellation or
acceleration of any obligation or loss of a benefit under (i) any provision of the organizational documents of SkyTerra, (ii) any material mortgage, indenture, lease, contract or other agreement or instrument, permit, concession,
franchise, license, judgment, order, decree, statute, law, ordinance, rule or regulation applicable to SkyTerra or its properties or assets, including but not limited to the MSV Documents. Except in connection or in order to comply with the
applicable provisions of (a) the filing of a registration statement pursuant to the Registration Rights Agreement, under the Securities Act and (b) filings or approvals required under state securities or “blue sky” laws, no
consent, approval, order or authorization of, or registration, declaration or filing with, any Governmental Entity is required by or with respect to SkyTerra in connection with the execution and delivery of this Agreement by SkyTerra or the
consummation by SkyTerra of the transactions contemplated hereby except for such consents, authorizations, filings, approvals and registrations which, if not obtained or made, would not have a SkyTerra Material Adverse Effect. 
 Section 3.5 Reports and Financial Statements. 
 (a) Except as set forth on Schedule 3.5(a) of the SkyTerra Disclosure Schedule, SkyTerra has timely filed all reports required to be filed with the SEC pursuant to the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) or the Securities Act since January 1, 2004 (collectively, the “SkyTerra SEC Reports”), and has previously made available 

  

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to BCE true and complete copies of all such SkyTerra SEC Reports. Such SkyTerra SEC Reports, as of their respective dates (or if amended or superseded by a
filing prior to the date of this Agreement, then on the date of such filing), complied in all material respects with the applicable requirements of the Securities Act and the Exchange Act, as the case may be, and none of such SkyTerra SEC Reports,
as of their respective dates (or if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing), contained any untrue statement of a material fact or omitted to state a material fact required to be stated
therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The consolidated financial statements of SkyTerra included in the SkyTerra SEC Reports have been prepared in accordance
with GAAP consistently applied throughout the periods indicated (except as otherwise noted therein or, in the case of unaudited statements, as permitted by Form 10-Q of the SEC) and fairly present (subject, in the case of unaudited statements, to
normal, recurring year-end adjustments and any other adjustments described therein), in all material respects, the consolidated financial position of SkyTerra and its consolidated Subsidiaries as at the dates thereof and the consolidated results of
operations and cash flows of SkyTerra and its consolidated subsidiaries for the periods then ended. Except as disclosed in SkyTerra SEC Reports there has been no change in any of the significant accounting (including Tax accounting) policies or
procedures of SkyTerra since December 31, 2005. 
 (b) Except as set forth on Schedule 3.5(b) of the SkyTerra
Disclosure Schedule, SkyTerra maintains a system of internal accounting controls sufficient to provide reasonable assurances that: (i) transactions are executed in accordance with management’s general or specific authorization;
(ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP or any other criteria applicable to such statements and to maintain accountability for assets; (iii) access to assets is
permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is compared with the existing assets at reasonable intervals and appropriate action is taken with respect to
any differences. 
 (c) Since January 1, 2005, neither SkyTerra nor, to SkyTerra’s knowledge, any director, officer,
employee, auditor, accountant or representative of SkyTerra has received or otherwise had or obtained knowledge of any complaint, allegation, assertion or claim, in writing, regarding the accounting or auditing practices, procedures, methodologies
or methods of SkyTerra or SkyTerra’s internal accounting controls, including any complaint, allegation, assertion or claim that SkyTerra has engaged in questionable accounting or auditing practices. No attorney representing SkyTerra, whether or
not employed by SkyTerra, has reported “evidence of a material violation” (as defined in 17 CFR Part 205) to SkyTerra’s board of directors or any committee thereof or to any director or officer of SkyTerra. 
 Section 3.6 Absence of Certain Changes or Events. Except as set forth in SkyTerra SEC Reports filed prior to the date of this Agreement or as set
forth on Schedule 3.6 of the SkyTerra Disclosure Schedule, since December 31, 2005, (i) SkyTerra has conducted its business and operations in the ordinary course of business and consistent with past practices and (ii) there has
not been any fact, event, circumstance or change affecting or relating to SkyTerra which has had or could reasonably be expected to have a SkyTerra Material Adverse Effect. Except as could not reasonably be expected to represent a 

  

 11 

 
SkyTerra Material Adverse Effect or as set forth on Schedule 3.6 of the SkyTerra Disclosure Schedule, the transactions contemplated by this Agreement
will not constitute a change of control under or require the consent from or the giving of notice to a third party pursuant to the terms, conditions or provisions of any SkyTerra Contract (defined below). 
 Section 3.7 Litigation. Except for litigation disclosed in the notes to the audited financial statements of SkyTerra as of and for the period
ended December 31, 2005, or in SkyTerra SEC Reports filed subsequent thereto but prior to the date of this Agreement, as of the date hereof, there is no suit, action, proceeding or investigation pending or, to the knowledge of SkyTerra,
threatened against SkyTerra or with respect to which SkyTerra could be required to provide indemnification or to otherwise contribute to liabilities or damages relating thereto, the outcome of which has had or could reasonably be expected to have a
SkyTerra Material Adverse Effect; nor is there any judgment, decree, injunction, rule or order of any Governmental Entity outstanding against SkyTerra having, or which has had or could reasonably be expected to have a SkyTerra Material Adverse
Effect. 
 Section 3.8 Compliance with Law. SkyTerra has not violated any Laws and is in compliance with all Laws, other than where
such violation or noncompliance, individually or in the aggregate, has not had and could not reasonably be expected to have a SkyTerra Material Adverse Effect. SkyTerra has not received any notice to the effect that, or otherwise been advised that
or is aware that, SkyTerra is not in such compliance with any Laws, and SkyTerra has no knowledge that any existing circumstances are reasonably likely to result in such violations of any Laws. 
 Section 3.9 Absence of Undisclosed Liabilities. Except as set forth on Schedule 3.9 of the SkyTerra Disclosure Schedule, for liabilities or
obligations which are accrued or reserved against in SkyTerra’s consolidated financial statements (or reflected in the notes thereto) as of and for the period ended December 31, 2005 as included in SkyTerra SEC Reports or which were
incurred after December 31, 2005 in the ordinary course of business and consistent with past practice, SkyTerra has no liabilities or obligations (whether absolute, accrued, contingent or otherwise) of a nature required by GAAP to be reflected
in a balance sheet (or reflected in the notes thereto) or which have had or could reasonably be expected to have a SkyTerra Material Adverse Effect, other than amounts that are completely and fully satisfied prior to the Closing. 
 Section 3.10 No Default. As of the date of this Agreement, SkyTerra is not in breach or violation of, or in default under (and no event has
occurred which with notice or lapse of time or both would constitute such a breach, violation or default), any term, condition or provision of (a) its certificate of incorporation or bylaws, or (b) (x) any order, writ, decree,
statute, rule or regulation of any Governmental Entity applicable to SkyTerra or any of its properties or assets or (y) any agreement required to be filed as a “Material Contract” as an exhibit to SkyTerra’s Annual
Report on Form 10-K for the year ended December 31, 2005 or any periodic Exchange Act 

  

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report required to be filed since then (a “SkyTerra Contract”), except in the case of this clause (b), which breaches, violations or
defaults, individually or in the aggregate, have not had and could not reasonably be expected to have a SkyTerra Material Adverse Effect. 
 Section 3.11 Taxes. Except as would not reasonably be expected to have a SkyTerra Material Adverse Effect: 
 (a) SkyTerra has timely filed all Tax Returns required to be filed by it (taking into account all applicable extensions) and all such Tax Returns are true, correct and complete in all respects. 
 (b) SkyTerra has paid all Taxes shown due on its Tax Returns. 
 (c) There is no pending or, to the knowledge of SkyTerra, threatened examination, investigation, audit, suit, action, claim or proceeding
relating to Taxes of SkyTerra. 
 (d) SkyTerra has not received written notice of a Tax Deficiency and, to the knowledge of
SkyTerra, no Tax Deficiency is proposed or threatened. 
 (e) All Tax Deficiencies asserted against SkyTerra have been paid or
finally settled and all amounts asserted in any Tax Deficiency to be owed have been paid. 
 (f) There are no Liens arising
from or related to Taxes on or pending against SkyTerra or any of its properties other than statutory Liens for Taxes that are not yet due and payable. 
 Section 3.12 Intellectual Property. 
 (a) SkyTerra owns or holds licenses or otherwise
has such rights to use, sell, license or dispose of all of the intellectual property rights used in the conduct of the business of SkyTerra as currently conducted, with such exceptions as individually or in the aggregate have not had and could not
reasonably be expected to have a SkyTerra Material Adverse Effect. 
 (b) With such exceptions as individually or in the
aggregate have not had and could not reasonably be expected to have a SkyTerra Material Adverse Effect, (i) the operation of SkyTerra’s business and the manufacture, marketing, use, sale, licensure or disposition of any Intellectual
Property in the manner currently used, sold, licensed or disposed of by SkyTerra does not and will not infringe on the proprietary rights of any person, nor has such an infringement been alleged within six years preceding the date of this Agreement
(other than such as have been resolved); (ii) there is no pending or threatened claim or litigation challenging or questioning the validity, ownership or right to use, sell, license or dispose of any such Intellectual Property in the manner in
which currently used, sold, licensed or disposed of by SkyTerra, nor is there a valid basis for any such claim or litigation, nor has SkyTerra received any notice asserting that the proposed operation of SkyTerra’s business or the use, sale,
license or disposition by SkyTerra of any of the Intellectual Property of SkyTerra conflicts or will conflict with the rights of any other party, nor is there a valid basis for any such assertion in each case; and (iii) none of the Intellectual
Property used in the conduct of the business of SkyTerra as 

  

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currently conducted is being infringed by any person and SkyTerra has not asserted any claim of infringement, misappropriation or misuse within the past six
years. 
 Section 3.13 Permits. SkyTerra has, and is in compliance with, all Permits required to conduct its business as now being
conducted, except any such SkyTerra Permit the absence of which, individually or in the aggregate, has not had and could not reasonably be expected to have a SkyTerra Material Adverse Effect (“SkyTerra Material Permits”). All
SkyTerra Material Permits are valid and in full force and effect. There is not now pending, or to the knowledge of SkyTerra, threatened, any action by any person or by or before any Governmental Entity to revoke, cancel, rescind, modify or refuse to
renew any SkyTerra Material Permits and, other than as set forth on Schedule 3.13 of the SkyTerra Disclosure Schedule, there exist no facts or circumstances that would reasonably be expected to give rise to such action. “SkyTerra
Permits” means all licenses, permits, franchises, approvals, authorizations, certificates, registrations, consents or orders of, or filings with, any Governmental Entity used or held for use in the operation of SkyTerra’s business
and all other rights and privileges granted by a Governmental Entity necessary to allow SkyTerra to own and operate its business without any violation of law. 
 Section 3.14 Brokers. No broker, finder or financial advisor is entitled to any brokerage, finder’s or other fee or commission in connection with the transactions contemplated by this Agreement based upon
arrangements made by or on behalf of SkyTerra. 
 Section 3.15 Contracts. All SkyTerra Contracts that are material to the business or
operations of SkyTerra taken as a whole have been filed as exhibits to SkyTerra’s Annual Report on 10-K for the year ended December 31, 2005 or any periodic Exchange Act report required to be filed since then, are valid and binding
obligations of SkyTerra, and, to the knowledge of SkyTerra, the valid and binding obligation of each other party thereto, except such SkyTerra Contracts that, if not so valid and binding, individually or in the aggregate, have not had and could not
reasonably be expected to have a SkyTerra Material Adverse Effect. Neither SkyTerra nor, to the knowledge of SkyTerra, any other party thereto, is in violation of or in default in respect of, nor has there occurred an event or condition, that with
the passage of time or giving of notice (or both), would constitute a default under or permit the termination of, any such SkyTerra Contract except such violations or defaults under or terminations that, individually or in the aggregate, have not
had and could not reasonably be expected to have a SkyTerra Material Adverse Effect. 
 Section 3.16 Insurance. SkyTerra’s
insurance policies are in all respects in full force and effect in accordance with their terms, no notice of cancellation has been received, and there is no existing default or event that, with the giving of notice or lapse of time or both, would
constitute a default thereunder. SkyTerra has made available to BCE true and correct copies of all insurance policies maintained by SkyTerra, or evidence thereof, as of the date of this Agreement. 
  

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 Section 3.17 Ownership of MSV LP Units and MSV GP Shares. As of the date hereof, SkyTerra or its
subsidiaries own 20,508,055 MSV LP Units and 2,719 MSV GP Shares and at the Closing, SkyTerra or its subsidiaries will own not less than 20,508,055 MSV LP Units and 2,719 MSV GP Shares (in each case as appropriately adjusted for any stock split,
combination, reorganization, recapitalization, reclassification, stock dividend, stock distribution or similar event with respect to the MSV LP Units or MSV GP Shares that is declared or effected prior to the Closing). 
 Section 3.18 Purchase Entirely for Own Account. The TMI Delaware Interests to be transferred to SkyTerra will be acquired for investment for
SkyTerra’s own account, not as a nominee or agent, and not with a view to the resale or distribution of any part thereof, in each case, in violation of applicable securities laws, and SkyTerra has no present intention of selling, granting any
participation in, or otherwise distributing the same except in compliance with applicable securities laws. 
 Section 3.19 Reliance Upon
SkyTerra’s Representations. SkyTerra understands that TMI Delaware Interests will not be registered under the Securities Act and the sale provided for in this Agreement and BCE and/or its subsidiaries’ transfer of securities hereunder
will be made in reliance upon an exemption from registration under the Securities Act, and that, in such case, BCE and/or its subsidiaries’ reliance on such exemption will be based on SkyTerra’s representations set forth herein.

 Section 3.20 Receipt of Information. SkyTerra believes it has received all the information it considers necessary or appropriate
for deciding whether to acquire TMI Delaware Interests. SkyTerra further represents that it has had an opportunity to ask questions and receive answers from BCE regarding the terms and conditions of the TMI Delaware Interests and the business and
financial condition of TMI Delaware and to obtain additional information (to the extent BCE possessed such information or could acquire it without unreasonable effort or expense) necessary to verify the accuracy of any information furnished to it or
which it had access. The foregoing, however, does not limit or modify the representations or warranties of BCE in this Agreement or the right of SkyTerra to rely upon such representations or warranties. SkyTerra has not received, nor is it relying
on, any representations or warranties from BCE, other than as provided herein. 
 Section 3.21 Investor Status; etc. SkyTerra
certifies and represents to BCE that it is an “accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act and was not organized for the purpose of acquiring TMI Delaware Interests. SkyTerra’s
financial condition is such that it is able to bear the risk of holding the TMI Delaware Interests for an indefinite period of time and the risk of loss of its entire investment. SkyTerra has sufficient knowledge and experience in investing in
companies similar to TMI Delaware so as to be able to evaluate the risks and merits of its investment in TMI Delaware. 
  

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 Section 3.22 Restricted Securities. SkyTerra understands that the TMI Delaware Interests may not
be sold, transferred or otherwise disposed of without registration under the Securities Act or an exemption therefrom, and that in the absence of an effective registration statement covering the TMI Delaware Interests or an available exemption from
registration under the Securities Act, such TMI Delaware Interests, must be held indefinitely. In particular, SkyTerra is aware that such TMI Delaware Interests may not be sold pursuant to Rule 144 or Rule 145 promulgated under the Securities Act
unless all of the conditions of the applicable rule are met. Among the conditions for use of Rules 144 and 145 is the availability of current information to the public about TMI Delaware. 
 Section 3.23 Issuances Exempt. Assuming the truth and accuracy of the representations and warranties of BCE contained in Article II hereof, the
offer, sale, and issuance of the SkyTerra Shares will be exempt from the registration requirements of the Securities Act, and will have been registered or qualified (or are exempt from registration and qualification) under the registration, permit
or qualification requirements of all applicable state securities laws, except as permitted pursuant to Section 4.2. 
 Section 3.24
No Integrated Offering. Neither SkyTerra, nor any of its Affiliates or any other person acting on SkyTerra’s behalf, has directly or indirectly engaged in any form of general solicitation or general advertising with respect to the
SkyTerra Shares and any shares of SkyTerra Common Stock for which the SkyTerra Shares may be exchanged, nor have any of such persons made any offers or sales of any security or solicited any offers to buy any security under circumstances that would
require registration of the SkyTerra Shares and any shares of SkyTerra Common Stock for which the SkyTerra Shares may be exchanged under the Securities Act or cause this offering of the SkyTerra Shares and any shares of SkyTerra Common Stock for
which the SkyTerra Shares may be exchanged to be integrated with any prior offering of securities of SkyTerra for purposes of the Securities Act. 
 ARTICLE IV 
 ADDITIONAL AGREEMENTS 
 Section 4.1 Governmental Approval. The parties will promptly execute and file, or join in the execution and filing of, any application,
notification or other document that may be necessary in order to obtain the authorization, approval or consent of any Governmental Entity, which may be reasonably required in connection with the consummation of the transactions contemplated by this
Agreement. Any fees associated with such notifications or applications shall be borne by SkyTerra; it being understood that SkyTerra shall not bear any expense associated with notifications or applications required under the Hart-Scott-Rodino
Antitrust Act of 1976 or similar foreign competition or antitrust laws upon the disposition by BCE of SkyTerra Shares. Each party will use commercially reasonable efforts to obtain, or assist the other party in 

  

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obtaining, all such authorizations, approvals and consents. Each party shall, in connection with its obligation to use commercially reasonable efforts to
obtain, or assist the other parties in obtaining, all such requisite authorizations, approvals or consents, use commercially reasonable efforts to (i) cooperate in all reasonable respects with the other parties in connection with any filing or
submission and in connection with any investigation or other inquiry, including any proceeding initiated by a private party, (ii) promptly inform the other parties of any communication received by such party from or given by such party to, the
United States Department of Justice (the “DOJ”), the United States Federal Trade Commission (the “FTC”), the Federal Communications Commission (the “FCC”) or any other
Governmental Entity or quasi-governmental entity and of any material communication received or given in connection with any proceeding by a private party, in each case regarding any of the transactions contemplated hereby, (iii) permit the
other parties, or the other parties’ legal counsel, to review any communication given by it to, and consult with the other parties in advance of any meeting or conference with, the DOJ, the FTC, the FCC or any such other Governmental Entity or
quasi-governmental entity or, in connection with any proceeding by a private party, with any other person and (iv) to the extent permitted by the FCC or other Governmental Entity, as appropriate, give the other parties the opportunity to attend
and participate in such meetings and conferences. 
 Section 4.2 Blue Sky Laws. SkyTerra shall exercise its commercially reasonable
best efforts to register or qualify (or obtain an exemption from registration) the SkyTerra Shares under the blue sky laws of the 50 states of the United States and of the District of Columbia and such other jurisdictions as BCE shall reasonably
request; provided, however, that, in the case of non-U.S. jurisdictions, SkyTerra will not be required to (a) qualify generally to do business in any jurisdiction where it would not otherwise be required to qualify but for this
Section 4.2, (b) subject itself to taxation in any such jurisdiction or (c) consent to general service of process in any such jurisdiction). SkyTerra shall pay for all fees (including filing and application fees), costs and expenses
in connection therewith. However, the failure to obtain such “blue sky” clearance in each such jurisdiction shall not be a condition to closing and shall not prevent the Closing from occurring; provided, that SkyTerra shall not fail to
obtain such “blue sky” clearance in (i) more than five such jurisdictions, (ii) Texas or (iii) New York. BCE shall cooperate with and assist SkyTerra in connection with obtaining the “blue sky” clearance
contemplated by this Section 4.2. 
 Section 4.3 Compliance with MSV Documents. (a) The parties intend that this Agreement
and the transactions contemplated hereby be consistent with the conditions and restrictions applicable to the parties and/or their affiliates pursuant to MSV’s organizational documents and/or pursuant to the agreements between or among
MSV’s limited partners or the stockholders of MSV GP, including, without limitation, the MSV Documents (collectively, the “MSV Investor Agreements”). SkyTerra and BCE shall take all commercially reasonable actions
necessary to comply with, or appropriately amend, the provisions of the MSV Investor Agreements relating to the transfer of the MSV Interests to the extent required in order to complete the transfer of beneficial ownership of the TMI Delaware
Interests contemplated by this Agreement. 
  

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 (b) BCE, for itself and its affiliates, hereby waives any rights of such party under
Section 8.2(a) of the MSV GP Stockholders Agreement with respect to any transactions contemplated by this Agreement or any Other Exchange Agreement. 
 Section 4.4 No Transfers; No Alternative Transactions; Standstill. 
 (a) BCE shall
not, and shall cause its subsidiaries and the officers, directors, employees, representatives (including, without limitation, investment bankers, attorneys and accountants), agents or Affiliates of BCE and its subsidiaries not to, directly or
indirectly, (i) solicit, initiate, encourage or facilitate any inquiries or the making of a proposal or offer with respect to, or consummate, an Alternative Proposal, (ii) participate in any discussions or negotiations with, deliver any
consent with respect to, or provide any non-public information to, or afford any access to the properties, books or records of TMI Delaware or MSV, or otherwise take any other action to assist, facilitate or undertake (including granting any waiver
or release under any standstill or similar agreement with respect to any securities of TMI Delaware or MSV), by itself or with any “person” or “group” (as such terms are used for purposes of Section 13(d)(3) of the Exchange
Act), any Alternative Proposal, or (iii) acquire, of record or beneficially, or have, by conversion, warrant, option or otherwise, any right or interest in or any agreement to acquire any TMI Delaware LP Interests, TMI Delaware GP Interests,
MSV LP Units or MSV GP Shares, other than the TMI Delaware Interests and the MSV Interests owned by BCE or any of its subsidiaries as of the date hereof. “Alternative Proposal” shall mean (a) any offer or proposal, or any indication
of interest in making an offer or proposal, made by any “person” or “group” (as such terms are used for purposes of Section 13(d)(3) of the Exchange Act) at any time, directly or indirectly, to acquire the TMI Delaware
Interests or the MSV Interests, (b) directly or indirectly sell, transfer, distribute, pledge, dispose of, grant an option with respect to or encumber the TMI Delaware Interests or the MSV Interests or (c) deposit the TMI Delaware
Interests or the MSV Interests into a voting trust or enter into a voting agreement or arrangement with respect to the TMI Delaware Interests or the MSV Interests or grant any proxy with respect thereto, in each case other than the transactions
contemplated by this Agreement and other than sales, transfers, distributions or dispositions of TMI Delaware Interests to BCE and/or one or more of its subsidiaries prior to Closing in a manner not inconsistent with the transactions contemplated by
this Agreement. 
 (b) The parties shall execute, immediately prior to the Closing, an instrument terminating the MSV GP
Stockholders’ Agreement. 
 (c) Except for transactions contemplated or permitted by this Agreement, BCE shall not, from
the date hereof until the third anniversary of the Closing (x) acquire, announce an intention to acquire, offer to acquire, or enter into any agreement, arrangement or undertaking of any kind the purpose of which is to acquire, by purchase,
exchange or otherwise, any shares of SkyTerra Common Stock or SkyTerra Non-Voting Common Stock or any security or obligation that is by its terms, directly or indirectly, convertible into or exchangeable or exercisable for shares of SkyTerra Common
Stock or SkyTerra Non-Voting Common Stock, including, without limitation any option, warrant or other subscription or purchase right with respect to SkyTerra Common Stock or SkyTerra Non-Voting Common Stock, whether by tender offer, market purchase,
privately negotiated purchase, merger or otherwise, other than, in any case, securities, obligations, options, warrants or subscription or 

  

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purchase rights with an aggregate fair market value at the time of purchase not exceeding $5 million, or (y) form, join or in any way participate in a
“group” (within the meaning of Section 13(d)(3) of the Exchange Act) or otherwise act in concert with any person in connection with such actions. 
 (d) Except for transactions contemplated or permitted by this Agreement, SkyTerra shall not, from the date hereof until the third
anniversary of the Closing, (x) acquire, announce an intention to acquire, offer to acquire, or enter into any agreement, arrangement or undertaking of any kind the purpose of which is to acquire, by purchase, exchange or otherwise, any equity
securities of BCE or any security or obligation that is by its terms, directly or indirectly, convertible into or exchangeable or exercisable for equity securities of BCE, including, without limitation any option, warrant or other subscription or
purchase right with respect to equity securities of BCE, whether by tender offer, market purchase, privately negotiated purchase, merger or otherwise, other than, in any case, securities, obligations, options, warrants or subscription or purchase
rights with an aggregate fair market value at the time of purchase not exceeding $5 million, or (y) form, join or in any way participate in a “group” (within the meaning of Section 13(d)(3) of the Exchange Act) or otherwise act
in concert with any person in connection with such actions. 
 Section 4.5 TMI Delaware Assets. 
 (a) (i) Prior to the Closing, BCE shall remove, or cause to be removed, at BCE’s expense, all assets net of assumed liabilities from
TMI Delaware other than the MSV Interests (such removal of net assets, the “BCE Distribution”) and shall ensure that TMI Delaware owns all the MSV Interests, free and clear of all Liens other than Permitted Liens, Securities
Law Encumbrances or the MSV Documents; (ii) at the Closing, BCE shall assume or cause to be assumed all liabilities of TMI Delaware existing immediately prior to the Closing or caused by the actions of BCE or its affiliates at the Closing
(other than Tax liabilities); and (iii) at the Closing, BCE shall contribute or cause to be contributed to TMI Delaware, in immediately available funds, $42,000,000 (the “Tax Amount”), or such other amount as may be mutually agreed by
the parties at or prior to Closing, such amount being made for the purpose of the payment of (A) any corporate-level Tax (to the extent not previously paid) determined as if the taxable year of TMI Delaware ended on the Closing Date and
calculated in a manner consistent with the principles of the last two sentences of Section 7.2(b) and (B) any applicable withholding Tax that TMI Delaware incurs or is responsible to pay to any taxing authority as a result of any
pre-Closing activity of TMI Delaware, including, without limitation, the BCE Distribution, computing such applicable withholding Tax by treating the amount of any such applicable withholding Tax as having been distributed to the recipient of the
distribution to which such withholding Tax relates. In making this calculation all losses, deductions and credits available in TMI Delaware to offset or reduce its tax liabilities (including an appropriate allocation of current year losses,
deductions and credits of MSV calculated in a manner consistent with the principles of the last two sentences of Section 7.2(b), as well as losses, deductions and credits carried forward from prior years available to TMI Delaware) will be taken
into account. Any liability for interest, penalties, additions to tax and additional amounts imposed with respect thereto will be calculated as if the Tax Amount has been paid to the relevant taxing authority on the due date for the taxes relating
thereto. 
  

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 (b) SkyTerra shall be responsible for preparing and filing all federal, state and local
Tax Returns of TMI Delaware for taxable periods ending on or prior to, or that include, the Closing Date that have not been filed on or prior to the Closing, and BCE shall reimburse SkyTerra for any reasonable out of pocket costs incurred by
SkyTerra in connection with such preparation and filing. Such Tax Returns shall be prepared in a manner consistent with TMI Delaware’s past practice, to the extent such past practice is in accordance with applicable Law. BCE shall be
responsible for the Taxes attributable to such Tax Returns for periods or portions thereof ending on or prior to the Closing Date, as determined in the manner set forth in the last two sentences of Section 7.2(b), to the extent they exceed the
Tax Amount. Thirty days prior to the due date for filing of any federal, state, or local income Tax Return described in the first sentence of this Section 4.5(b), SkyTerra shall provide BCE with a copy of the draft Tax Returns and
schedules setting forth BCE’s Tax liability (including the withholding tax liability, if any) with respect to the Taxes shown as due on the relevant draft Tax Returns, as determined in the manner set forth in the last two sentences of
Section 7.2(b), and the costs incurred in connection with the preparation and filing of such Tax Return. To the extent the aggregate Tax liability for which BCE is shown as liable pursuant to such schedules exceeds the Tax Amount, BCE shall
reimburse SkyTerra for such excess, and to the extent the aggregate Tax liability for which BCE is shown as liable pursuant to such schedules falls short of the Tax Amount, SkyTerra shall reimburse BCE for such shortfall, in either case within
twenty-five days after receipt of such schedules. In preparing the Tax Returns described in the first sentence of this Section 4.5(b), all losses, deductions and credits available in TMI Delaware to offset or reduce its tax liabilities
(including an appropriate allocation of current year losses, deductions and credits of MSV as calculated in the manner set forth in the last two sentences of Section 7.2(b), as well as losses, deductions and credits carried forward from prior
years available to TMI Delaware) shall be taken into account. The Tax Returns will be filed in a manner consistent with prior tax returns and no elections will be made, amended or terminated by such Tax Returns (except as may be required by Law)
without BCE’s consent, which consent will not be unreasonably withheld. Except as may be required by Law, SkyTerra will not file or permit to be filed an amended Tax Return for TMI Delaware with respect to a pre-Closing period (including the
pre-Closing portion of the Straddle Period) without BCE’s consent, which may not be unreasonably withheld. 
 (c) The
parties agree that no election under Section 338 of the Internal Revenue Code will be made in connection with the transactions contemplated herein. 
 (d) SkyTerra shall include TMI Delaware in a U.S. consolidated federal income tax return that includes SkyTerra for SkyTerra’s first taxable period ending after the Closing Date. 
 Section 4.5A Contests; Transfer Taxes. 
 (a) After the Closing, each party shall promptly notify the other party in writing of the proposed assessment or the commencement of any Tax audit or administrative or judicial proceeding or of any demand or claim in
respect of Taxes on the other party or its affiliates which, if determined adversely to the taxpayer or after the lapse of time, could give rise to a claim for indemnification under Section 7.2(b) (a “Contest”). Such notice
shall contain factual information (to the extent known to such party) describing the asserted Tax liability in 

  

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reasonable detail and shall include copies of any notice or other document received from any taxing authority in respect of any such asserted Tax liability.

 (b) In the case of a Contest that relates to taxable periods ending on or before the date of the Closing, BCE shall have
the right, at its expense, to control the conduct of such Contest; provided, however, that SkyTerra shall have the right to participate in such Contest at its expense; and, provided further, that BCE shall not settle or
compromise any asserted liability with respect to any such Contest without the prior written consent of SkyTerra if such settlement or compromise would adversely affect the Tax liability of SkyTerra, its affiliates or TMI Delaware in a post-Closing
taxable period, which consent shall not be unreasonably withheld, delayed or conditioned. 
 (c) With respect to Straddle
Periods, SkyTerra may elect to control any Contest involving any asserted Tax liability with respect to which indemnity may be sought from BCE pursuant to and in accordance with Section 7.2(b). If SkyTerra elects to control such Contest,
SkyTerra shall within 60 days of receipt of the notice of asserted Tax liability notify BCE of its intent to do so, and BCE shall reasonably cooperate in each phase of such Contest. If SkyTerra elects to control such Contest, then BCE may
participate in such Contest, at BCE’s expense. If SkyTerra elects not to control such Contest, BCE may assume control of such Contest, at BCE’s expense. If BCE assumes control of such Contest, then SkyTerra may participate, at
SkyTerra’s expense, in such Contest. The controlling party shall not settle or compromise any asserted liability with respect to any Contest governed by this Section 4.5A(c) without the prior written consent of the other party, which shall
not be unreasonably withheld, delayed or conditioned. 
 (d) Without limiting any of the foregoing provisions of this
Section 4.5A or Section 4.5: 
 (i) SkyTerra and BCE shall cooperate, as and to the extent reasonably requested by
the other party, in connection with the preparation and filing of Tax Returns pursuant to this Agreement and any Tax audit, litigation or other matter in respect of Taxes. Such cooperation shall include the retention and (upon the other party’s
request) the provision of records and information which are reasonably relevant to any such Tax Return, audit, litigation or other Tax matter, making employees available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder, and timely notification of receipt of any notice of an audit or notice of deficiency relating to any Tax or Tax Return with respect to which the non-recipient may have liability hereunder; and

 (ii) With respect to any Contest, (A) the controlling party shall consult with the non-controlling party reasonably in
advance of taking any significant action in connection with such Contest; (B) the controlling party shall consult with the non-controlling party and offer the non-controlling party a reasonable opportunity to comment before submitting any
written material prepared or furnished in connection with such Contest; (C) the controlling party shall pursue and defend such Contest diligently and in good faith as if it were the 

  

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only party in interest in connection with such Contest; and (D) the non-controlling party shall be entitled to receive on a timely basis copies of any
written materials relating to such Contest sent to or received from the relevant taxing authority, have its representatives attend significant meetings and participate in significant telephone conferences with the relevant tax authority, and
otherwise participate in such Contest on a reasonable basis. 
 (e) Not later than five (5) days prior to the due date of
any liability in respect of Taxes arising out of any settlement, compromise or other final disposition of any Contest, BCE shall pay to TMI Delaware, or, if and as directed by SkyTerra, to SkyTerra, the amount of Losses in respect of Taxes arising
out of such Contest for which BCE is liable pursuant to Section 7.2(b). The amount of such Taxes shall be determined in a manner consistent with the last two sentences of Section 7.2(b). 
 (f) All transfer, documentary, sales, use, stamp, registration and other substantially similar Taxes and fees (including any penalties and
interest) incurred in connection with this Agreement (collectively, “Transfer Taxes”) shall be paid when due by the party bearing the primary incidence of such Transfer Taxes under relevant local law. Such party will, at its own
expense, file all necessary Tax Returns and other documentation with respect to all such Transfer Taxes and, if required by applicable law, the other party will, and will cause its subsidiaries to, join in the execution of any such Tax Returns and
other documentation. The paying party shall provide the non-paying party with evidence satisfactory to the non-paying party that such Transfer Taxes have been paid. The parties shall reasonably cooperate in the identification of such Transfer Taxes
and in the exchange of information relevant to such Transfer Taxes. 
 Section 4.6 MSV Options. At the Closing the current and former
nominees of TMI Delaware to the board of directors of MSV GP will be entitled to exchange their options to acquire MSV LP Units for 2.82 shares of SkyTerra Non-Voting Common Stock per MSV LP Unit underlying such options, minus the aggregate strike
price of those options divided by the average per share closing price of SkyTerra Common Stock for the 10 trading days ending on and including the last full trading day before the closing; provided, that such treatment will not create any
obligation or liability as a result of the violation of any applicable regulation or breach of any existing agreement to which SkyTerra or any of its subsidiaries was a party as of May 7, 2006; provided, however, for the avoidance of
doubt, that the consummation of the transactions contemplated by the Other Exchange Agreements and any obligation or liability resulting therefrom shall be deemed to have occurred as the result of agreements to which SkyTerra and/or its subsidiaries
were party on such date. SkyTerra shall use its commercially reasonable efforts to register the resale of any shares of SkyTerra Common Stock for which the shares of SkyTerra Non-Voting Common Stock issued pursuant to this Section 4.6 may be
exchanged on an appropriate form of registration statement; provided, however, that if the shares of SkyTerra Non-Voting Common Stock issued pursuant to this Section 4.6 are transferred to BCE, SkyTerra shall at BCE’s request promptly
amend the Registration Rights Agreement (and the registration statement contemplated thereby) so that they cover both the shares of SkyTerra Common Stock for which such shares of SkyTerra Non-Voting Common Stock may be exchanged and the SkyTerra
Shares. 
  

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 Section 4.7 Commercially Reasonable Efforts. The parties shall each cooperate with each other and
use (and shall cause their respective subsidiaries to use) their respective commercially reasonable efforts to promptly (i) take or cause to be taken all necessary actions, and do or cause to be done all things, necessary, proper or advisable
under this Agreement or the MSV Documents and applicable laws to consummate and make effective all the transactions contemplated by this Agreement as soon as practicable, including, without limitation, amending the MSV Investor Agreements, preparing
and filing promptly and fully all documentation to effect all necessary filings, notices, petitions, statements, registrations, submissions of information, applications and other documents and approving the change of control of MSV and
(ii) obtain all approvals required to be obtained from any Governmental Entity or third party necessary, proper or advisable to the transactions contemplated by this Agreement. BCE and its affiliates shall at any time, and from time to time,
after the applicable Closing, execute, acknowledge and deliver all further assignments, transfers, and any other such instruments of conveyance, upon the request of SkyTerra, to confirm the sale of the TMI Delaware Interests hereunder. 

Section 4.8 Exchange of SkyTerra Non-Voting Common Stock for SkyTerra Common Stock. If BCE desires to transfer any shares of SkyTerra
Non-Voting Common Stock to any person, other than a subsidiary of BCE or an entity of which BCE is a subsidiary, and (a) the transfer is a sale by BCE in the open market pursuant to an effective registration statement or an exemption from
registration or (b) following such transfer, such person by itself or with any “person” or “group” (as such terms are used for purposes of Section 13(d)(3) of the Exchange Act) will not beneficially own 10% or more of
SkyTerra’s voting power (as determined pursuant to Rule 13d-3 under the Exchange Act) then, in either case, at the request of BCE, SkyTerra will exchange such shares of SkyTerra Non-Voting Common Stock for SkyTerra Common Stock on a one-for-one
basis (in each case as appropriately adjusted for any stock split, combination, reorganization, recapitalization, reclassification, stock dividend, stock distribution or similar event declared or effected after the issuance of such shares of
SkyTerra Non-Voting Common Stock being exchanged). Upon surrender of certificates representing the shares of SkyTerra Non-Voting Common Stock that are being exchanged as part of such transfer, SkyTerra will issue to the transferee certificates
representing the appropriate number of shares of SkyTerra Common Stock. The shares of SkyTerra Common Stock issuable upon exchange of the shares of SkyTerra Non-Voting Common Stock have been duly authorized by SkyTerra and, when delivered in
accordance with the terms of this Section 4.8, will be validly issued, fully paid and nonassessable. 
 Section 4.9 MSV Canada
Interests and Restriction on Transfer of SkyTerra Shares. Subject to the terms of Section 4.12(c) below, the parties agree that neither BCE nor any of its subsidiaries may transfer SkyTerra Shares or the equity interests of the subsidiary
owning such SkyTerra Shares to any party other than BCE or a subsidiary of BCE unless (a) after giving effect to the transfer BCE and its subsidiaries collectively own directly or indirectly a number of 

  

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shares of SkyTerra common stock at least equal to the Minimum Linked Number (as such term is defined in the MSV Canada Amendment) or (b) the transfer is
to a transferee reasonably acceptable to SkyTerra that, together with its affiliates, already owns or concurrently receives no less than a majority of the aggregate equity interests of Mobile Satellite Ventures Holdings (Canada) Inc.
(“MSV Canada”); provided, however, that the foregoing transfer restriction shall terminate (and the Minimum Linked Number shall become zero) on the earliest to occur of (a) the date on which BCE ceases to own a majority
of the voting interests of MSV Canada or (b) the effective date of changes to the Restrictions (as defined in the MSV Canada Shareholders Agreement) the effect of which would be to allow MSV to hold directly a majority of the common shares in
MSV Canada or Mobile Satellite Ventures (Canada) Inc. 
 Section 4.10 Public Announcements. Except as may be required by applicable
law, no party hereto shall make any public announcements or otherwise communicate with any news media with respect to this Agreement or any of the transactions contemplated hereby, without prior consultation with the other parties as to the timing
and contents of any such announcement or communications; provided, however, that nothing contained herein shall prevent any party from promptly making all filings with any Governmental Entity or disclosures with the stock exchange, if any, on which
such party’s capital stock is listed, as may, in its judgment, be required in connection with the execution and delivery of this Agreement or the consummation of the transactions contemplated hereby. 
 Section 4.11 Prohibited Actions; Appropriate Adjustments. From the date hereof through the Closing, except as expressly contemplated by this
Agreement or the Other Exchange Agreements, without obtaining the prior written consent of BCE, SkyTerra shall not set any record date with respect to any dividend or declare or pay any dividend, either in cash, securities or otherwise, on any
shares of its capital stock, repurchase any shares of its capital stock, make any distributions to the holders of its capital stock or take any other similar action. Following the Closing and until BCE no longer holds any shares of SkyTerra
Non-Voting Common Stock, in the event SkyTerra declares any stock split, combination, reclassification, dividend (in cash, securities or otherwise), stock distribution or the like as to the SkyTerra Common Stock, SkyTerra shall also declare an
identical stock split, combination, reclassification, stock dividend, stock distribution or the like as to the SkyTerra Non-Voting Common Stock and more generally shall take whatever actions are necessary so that it at all times treats each share of
SkyTerra Non-Voting Common Stock in a manner identical to each share of SkyTerra Voting Stock outstanding as of the date hereof except for lack of voting rights and trading in the over-the-counter market. In the event that any series of SkyTerra
Common Stock is listed on any national exchange, it shall not be required that SkyTerra Non-Voting Common Stock also be listed. Notwithstanding the foregoing, this Section 4.11 shall not prohibit, limit or apply to the SkyTerra Permitted
Issuances. 
  

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 Section 4.12 SkyTerra Change of Control. 
 (a) In the event that a SkyTerra Change of Control (as defined below) occurs prior to the Closing, BCE and SkyTerra shall each have the
right to require the immediate exchange of the TMI Delaware Interests for the SkyTerra Shares. 
 (b) In the event of a
SkyTerra Change of Control, the holders of SkyTerra Common Stock and the holders of SkyTerra non-Voting Common Stock, including BCE, shall be entitled to received the same per share consideration on a per share basis. 
 (c) If the Minimum Linked Number is greater than zero at the time of a SkyTerra Change of Control transaction, BCE will, upon
SkyTerra’s request, enter into an agreement, in a form reasonably determined by the parties, whereby BCE will deliver or cause to be delivered to the person or persons acquiring control of SkyTerra (or the designee of such person or persons),
at a time within six months following such SkyTerra Change of Control specified by SkyTerra, the equity interests of MSV Canada owned by BCE and its affiliates for nominal consideration. 
 (d) A “SkyTerra Change of Control” shall be deemed to occur upon (i) the acquisition of SkyTerra by another
entity by means of any transaction or series of related transactions (including, without limitation, any reorganization, merger or consolidation) unless SkyTerra’s stockholders of record as constituted immediately prior to such acquisition or
sale will, immediately after such acquisition or sale (by virtue of securities issued as consideration for SkyTerra’s acquisition or sale or otherwise) hold at least 50% of the voting power, directly or indirectly, of the surviving or acquiring
entity (except that the sale by SkyTerra of shares of its capital stock to financial investors in bona fide financing transactions shall not be deemed a SkyTerra Change of Control for this purpose); (ii) a sale or transfer of all or
substantially all of the assets of SkyTerra to a third party, including a sale or transfer of all or substantially all of the assets of SkyTerra’s subsidiaries, if such assets constitute substantially all of the assets of SkyTerra and such
subsidiaries taken as a whole, unless SkyTerra’s stockholders of record as constituted immediately prior to such sale will, immediately after such sale (by virtue of securities issued as consideration for SkyTerra’s sale or otherwise) hold
at least 50% of the beneficial ownership or voting power; or (iii) if any person or group of related persons (as defined in Rule 13(d) of the Exchange Act) shall become the beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of
shares representing more than 50% of the aggregate ordinary voting power represented by the issued and outstanding voting stock of SkyTerra, unless SkyTerra’s stockholders of record as constituted immediately prior to such acquisition or sale
will, immediately after such acquisition hold at least 50% of the voting power, directly or indirectly, of the acquiring entity or group; provided, however, the receipt by Motient of shares of SkyTerra Non-Voting Common Stock pursuant to the
Other Exchange Agreements and any exchange of such shares for SkyTerra Common Stock shall not be deemed to be a SkyTerra Change of Control. 
 Section 4.13 BCE Right to Designate Directors to MSV GP. SkyTerra agrees to cause the agreement set forth in Section 5.10 of the MSV Canada Shareholders Agreement to be complied with. 
  

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 Section 4.14 Preservation of TMI Delaware Status as Limited Partnership. SkyTerra agrees not to
take any action on the Closing Date that would endanger TMI Delaware’s status as a limited partnership under Delaware law. In furtherance of this obligation, SkyTerra will designate one or more wholly-owned subsidiaries in addition to SkyTerra
as entities to which BCE and its subsidiaries will transfer TMI Delaware Interests at Closing so that at all times from the Closing through the end of the Closing Date there will be at least one general partner and a separate limited partner of TMI
Delaware. 
 ARTICLE V 
 CONDITIONS TO CLOSING OF SKYTERRA 
 The obligation of SkyTerra to purchase the TMI Delaware Interests from BCE and/or
its designated subsidiaries, and to issue the SkyTerra Shares to BCE and/or its designated subsidiaries, at the Closing is subject to the fulfillment to SkyTerra’s satisfaction (unless waived by SkyTerra) on or prior to the Closing Date of each
of the following conditions: 
 Section 5.1 Representations and Warranties. Each representation and warranty made by BCE in Article II
above shall be true and correct in all material respects on and as of the Closing Date as though made as of the Closing Date, except that any such representation and warranty that is given as of a particular date or period and relates solely to such
particular date or period shall be true and correct in all material respects only as of such date or period, provided, however, that any representations and warranties which by their terms are qualified by materiality which shall be true and correct
in all respects, with the same force and effect as if such representation and warranty had been made on and as of the Closing Date. 
 Section 5.2 Performance. 
 (a) All covenants, agreements and conditions contained in this Agreement to be
performed or complied with by BCE or its affiliates on or prior to the Closing Date shall have been performed or complied with by BCE or its affiliates, as applicable, in all respects. 
 (b) BCE and its directors shall have acted consistently with the Signing Letters and shall not have revoked the Signing Letters or
breached any provisions thereof or taken any action in opposition of any matters covered thereby. 
 Section 5.3 Intentionally
Omitted. 
  

 26 

 Section 5.4 Opinion of BCE’s Counsel. SkyTerra shall have received at the Closing from one or
more counsel to BCE, an opinion or opinions covering substantially the matters set forth in Exhibit I hereto dated as of the Closing Date. 
 Section 5.5 Certificates and Documents. BCE shall have delivered at or prior to the Closing to SkyTerra the BCE Closing Deliveries. 
 Section 5.6 Compliance Certificate. BCE shall have delivered to SkyTerra or its counsel a certificate signed by an authorized officer of BCE, dated the Closing Date, certifying to the fulfillment of the conditions specified in
Sections 5.1 and 5.2 above. 
 Section 5.7 Intentionally Omitted. 
 Section 5.8 Intentionally Omitted. 
 Section 5.9 Board of Directors. Only one of the existing members of the board of directors of MSV GP that are appointees of BCE shall not have resigned, effective as of Closing. 
 Section 5.10 Intentionally Omitted. 
 ARTICLE VI 
 CONDITIONS TO CLOSING OF BCE 
 The obligation of BCE to purchase or to cause to be purchased the SkyTerra Shares from SkyTerra, and to transfer or to cause to be transferred the TMI
Delaware Interests to SkyTerra, at the Closing is subject to the fulfillment to BCE’s satisfaction (unless waived by BCE) on or prior to the Closing Date of each of the following conditions: 
 Section 6.1 Intentionally Omitted. 
 Section 6.2 Performance. All covenants, agreements and conditions contained in this Agreement to be performed or complied with by SkyTerra on or prior to the Closing Date shall have been performed or complied with by SkyTerra in all
respects. 
 Section 6.3 Intentionally Omitted. 
  

 27 

 Section 6.4 Opinion of Company’s Counsel. BCE shall have received at the Closing from
Skadden, Arps, Slate, Meagher & Flom LLP, counsel to SkyTerra, an opinion covering substantially the matters set forth in Exhibit K hereto dated as of the Closing Date. 
 Section 6.5 Certificates and Documents. SkyTerra shall have delivered at or prior to the Closing to BCE the SkyTerra Closing Deliveries.

 Section 6.6 Intentionally Omitted. 
 Section 6.7 Intentionally Omitted. 
 Section 6.8 Intentionally Omitted. 
 Section 6.9 Cash Balance. SkyTerra and its subsidiaries shall have an aggregate cash balance of not less than $1, net of any indebtedness for
borrowed money. 
 Section 6.10 Intentionally Omitted. 
 ARTICLE VII 
 INDEMNIFICATION 
 Section 7.1 Survival of Representations and Warranties. The warranties and representations of BCE and SkyTerra contained in this Agreement shall
survive the execution and delivery of this Agreement and the Closing for a period of twelve (12) months following the Closing (the “Survival Period”), and in each case shall in no way be affected by any investigation of
the subject matter thereof made by any party hereto. The covenants and agreements shall survive the Closing in accordance with their terms. 
 Section 7.2 Obligation to Indemnify. 
 (a) SkyTerra Obligation to Indemnify. From and after the
Closing, SkyTerra shall indemnify, defend and hold harmless BCE and its respective officers, directors, stockholders, partners, employees, subsidiaries, agents and affiliates (each, a “BCE Indemnitee”), from and against all
losses, claims, damages, liabilities, obligations, fines, penalties, judgments, settlements, costs, expenses and disbursements (including attorneys’, 

  

 28 

 
accountants’ and investigatory fees and expenses) (collectively, “Losses”) to the extent resulting from any (i) breach or
inaccuracy of any representation or warranty of SkyTerra contained in this Agreement for which a claim is initiated prior to the expiration of the Survival Period (ii) non-fulfillment or breach of any covenant or agreement of SkyTerra contained
in this Agreement, including without limitation Section 4.5 hereof. 
 (b) BCE’s Obligation to Indemnify.
From and after the Closing, (i) BCE shall indemnify, defend and hold harmless SkyTerra and its officers, directors, stockholders, partners, employees, agents and affiliates (each, a “SkyTerra Indemnitee”) from and
against any and all Losses net of any tax benefit actually realized (either by cash refund or actual reduction of Taxes otherwise payable) net of any current or future Tax detriments actually realized or to be realized by the Indemnified Party or
its Affiliates arising in connection with the accrual, incurrence or payment of any such Losses to the extent resulting from any (A) breach or inaccuracy of any representation or warranty of BCE contained in this Agreement for which a claim is
initiated prior to the expiration of the applicable Survival Period, and (B) non-fulfillment or breach of any covenant or agreement of BCE contained in this Agreement, and (ii) without duplication of any item previously indemnified under
clause (i), BCE shall indemnify SkyTerra and MSV for all TMI Delaware Losses net of any tax benefit actually realized (either by cash refund or actual reduction of Taxes otherwise payable) net of any current or future Tax detriments actually
realized or to be realized by the Indemnified Party or its Affiliates arising in connection with the accrual, incurrence or payment of any such Losses arising out of or relating to all activities of BCE or its affiliates (including TMI Delaware)
occurring at or prior to the Closing (other than liabilities caused by actions of SkyTerra or its affiliates at the Closing), including, without limitation (but without duplication of any Tax liability as determined in accordance with
Section 4.5(b) of this Agreement), any Tax liabilities (including, without limitation, any Tax liabilities with respect to the receipt of any Tax indemnity payment hereunder) that TMI Delaware subsequently incurs or is responsible to pay to any
Taxing authority in connection with, or arising as a consequence of, the BCE Distribution. To the extent permitted by law, any payment made hereunder shall be treated as an adjustment to the purchase price. For purposes of clause (ii) of the
preceding sentence, in the case of any liability for Taxes of TMI Delaware that are imposed on a periodic basis and are payable for a Tax period that includes (but does not end on) the Closing Date (a “Straddle Period”), the
portion of such Tax that relates to the portion of such Straddle Period ending on the Closing Date shall (A) in the case of any Taxes other than Taxes based upon or related to income or receipts, be deemed to be the amount of such Tax for the
entire Straddle Period multiplied by a fraction the numerator of which is the number of days in the Straddle Period ending on the Closing Date and the denominator of which is the number of days in the entire Straddle Period, and (B) in the case
of any Tax based upon or related to income or receipts, be deemed equal to the amount which would be payable if the relevant Tax period ended on the Closing Date, provided, that for purposes of this sentence any transactions occurring outside the
ordinary course of business on the Closing Date at or after the Closing (other than any transactions contemplated by this Agreement or by or under any documents executed in connection herewith or in connection with the Closing) shall be treated as
having occurred on the day after the Closing Date. Principles similar to those set forth in the preceding sentence shall be applied in determining the distributive share of TMI Delaware’s income or loss of MSV for the portion of the MSV LP tax
period ending on the Closing Date based on closing of the books of MSV LP as of the end of such date. 
  

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 (c) Indemnification Basket Amount. Notwithstanding the foregoing, an Indemnifying
Party (as defined below) shall not be required to indemnify an Indemnified Party (as defined below) pursuant to Section 7.2(a) or Section 7.2(b), as applicable, unless and until the amount of all Losses incurred by such
Indemnified Party exceeds $5,000,000 in the aggregate (the “Basket Amount”), in which case the Indemnifying Party shall be required to indemnify the Indemnified Party for any and all such Losses in excess of the Basket
Amount; provided, however, that the limitation set forth in this Section 7.2(c) shall not apply to Losses resulting from a breach of the representations and warranties set forth in Sections 2.2, 2.11, 3.2(b)
or 3.11. 
 Section 7.3 Indemnification Procedures. 
 (a) The person seeking indemnification hereunder (each, an “Indemnified Party”) shall give the party or parties
from whom indemnification is sought or to be sought (each, an “Indemnifying Party”) prompt written notice of any Loss as to which they have received written notification. If an indemnification claim involves a claim by a
third party (a “Third Party Claim”), the Indemnified Party shall promptly notify the Indemnifying Party thereof in writing; provided, however, that no delay on the part of the Indemnified Party in notifying the
Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the Indemnifying Party is actually and materially prejudiced thereby. An Indemnifying Party shall have ten business days
from the delivery of such notice (the “Notice Response Period”) to notify the Indemnified Party whether or not it disputes its liability to the Indemnified Party hereunder with respect to such claim or demand. If an
Indemnifying Party disputes its liability to an Indemnified Party hereunder with respect to such claim or demand or the amount thereof, such dispute shall be resolved by a civil action in a court of appropriate jurisdiction (including as part of any
proceeding with respect to the claim that gave rise to the indemnification claim to which such dispute relates) which may be commenced by either party. During the Notice Response Period, no such claim or demand may be settled by the Indemnified
Party. 
 (b) With respect to each Indemnification Matter (as defined below), the Indemnified Parties will have the sole right
and authority to control the defense against any Third Party Claim with one counsel of their collective choice. This right shall include the right to settle or resolve the Third Party Claim by entering into an agreement memorializing the terms of
settlement or resolution (a “Settlement Agreement”), provided however, that the Indemnified Party provides the Indemnifying Party with notice (in accordance with Section 7.4 hereof) of its intent to enter into a
Settlement Agreement, which notice shall include the proposed terms of the Settlement Agreement. The Indemnifying Party shall, within ten business days of receipt of such notice, have the right to reject the proposed Settlement Agreement, but shall
do so only if it reasonably determines that the Settlement Agreement does not represent a bona fide and reasonable resolution of the underlying Third Party Claim. The Indemnifying Party (and any Indemnified Party who is not otherwise satisfied with
the one counsel chosen by the Indemnified Parties collectively) may retain separate co-counsel at their sole cost and expense and participate in the defense of the Third Party Claim; provided, however, that in no event may any Indemnifying Party
consent to the entry of any judgment, enter into any settlement with respect to the Third Party Claim or agree with any Person other than the Indemnified Party, to take any other action with respect to the Third Party Claim without the prior written
consent of the Indemnified Party . If it is determined pursuant to an order or Settlement Agreement that an 

  

 30 

 
Indemnifying Party is responsible for all or a portion of any amounts for which the Indemnified Party is liable as a result of such Third Party Claim
hereunder, the Indemnifying Party shall, pursuant to Section 7.4(b), render payment to the Indemnified Party for all Losses resulting from such claim, subject to the provisions of Section 7.5. 
 (c) Anything to the contrary in this Section 7.3 notwithstanding, the provisions of Section 4.5A and not this Section 7.3
shall apply to Third Party Claims relating to Taxes; provided, however, that any Losses incurred in the enforcement of the indemnity under Section 4.5A may be recovered pursuant to this Article VII. 
 Section 7.4 Notices and Payments. 
 With respect to each separate matter which is subject to indemnification under this Article VII (each, an “Indemnification Matter”): 
 (a) Notice. Upon the Indemnified Party’s receipt of written documents pertaining to an Indemnification Matter, or, if the
Indemnification Matter does not involve a third party demand or claim, within a reasonable time after the Indemnified Party first has actual knowledge of such Indemnification Matter, the Indemnified Party shall give written notice to the
Indemnifying Party of the nature of such Indemnification Matter, and, if susceptible to estimation at such time, the Indemnified Party’s best estimate of the amount demanded or claimed in connection therewith as provided in
Section 7.3; provided, however, that no delay on the part of the Indemnified Party in notifying the Indemnifying Party shall relieve the Indemnifying Party from any obligation hereunder unless (and then solely to the extent) the
Indemnifying Party is actually and materially prejudiced thereby. 
 (b) Payment. Upon determination of the amount of
the Loss (whether due to the Indemnifying Party’s failure to dispute the indemnification matter, by agreement among the parties, or after a settlement agreement is executed or a final order is rendered with respect to the indemnification
matter), the Indemnifying Party shall promptly (and in any event, not later than ten days after such determination) pay to the Indemnified Party all amounts owing by the Indemnifying Party under this Article VII with respect to such indemnification
matter, subject to the limitations set forth in Section 7.5. 
 Section 7.5 Limited Remedy. 
 (a) BCE Indemnitee Indemnification Limit. Except in the case of fraud or where specific performance is sought, the maximum amount
all BCE Indemnitees may recover in the aggregate pursuant to the indemnity set forth in Section 7.2(a) hereof with respect to the Closing shall be limited to the value of the shares of SkyTerra Common Stock into which the SkyTerra Shares
may be exchanged based on the average of the high and low sales price for the five trading day period immediately prior to, and including, the Closing Date (plus the value of any additional property required to be provided to BCE pursuant to
Section 4.11 hereof at the Closing, if any). 
 (b) SkyTerra Indemnitee Indemnification Limit. Except in
the case of fraud or where specific performance is sought, the maximum amount all SkyTerra Indemnitees may recover in the aggregate pursuant to the indemnity set forth in Section 7.2(b) hereof with 

  

 31 

 
respect to the Closing shall be limited to the value of the shares of SkyTerra Common Stock into which the SkyTerra Shares may be exchanged based on the
average of the high and low sales price for the five trading day period immediately prior to, and including, the Closing Date (plus the value of any additional property required to be provided to BCE pursuant to Section 4.11 hereof at
the Closing, if any). 
 ARTICLE VIII 
 MISCELLANEOUS 
 Section 8.1 Termination. This Agreement may be terminated prior to the
Closing as follows: 
 (i) at any time on or prior to the Closing Date, by mutual written consent of BCE and SkyTerra;

 (ii) at the election of BCE or SkyTerra by written notice to the other parties hereto after 5:00 p.m., New York time, on
February 28, 2007, if the Closing shall not have occurred, unless such date is extended by the mutual written consent of BCE and SkyTerra; provided, however, that the right to terminate this Agreement pursuant to this clause (ii) shall not
be available to a party whose failure or whose affiliate’s failure to perform or observe in any material respect any of its obligations under this Agreement in any manner shall have been the principal cause of or resulted in the failure of the
Closing to occur on or before such date; 
 (iii) at the election of BCE, if there has been a material breach of any
representation, warranty, covenant or agreement on the part of SkyTerra contained in this Agreement, which breach has not been cured within fifteen (15) days of notice to SkyTerra of such breach; or 
 (iv) at the election of SkyTerra, if there has been a material breach of any representation, warranty, covenant or agreement on the part
of BCE contained in this Agreement, which breach has not been cured within fifteen (15) days notice to BCE of such breach. 
 Section
8.2 Survival. If this Agreement is terminated and the transactions contemplated hereby are not consummated as described above, this Agreement shall become void and of no further force and effect, except for the provisions of this
Section 8.2 and Section 1.3(a), Section 4.3(b), and Sections 8.3 through Section 8.15 (inclusive); provided, however, that (a) none of the parties hereto shall have any
liability in respect of a termination of this Agreement pursuant to Section 8.1(i), or Section 8.1(ii) and (b) nothing shall relieve any of the parties from liability for actual damages resulting from a breach of any
representation, warranty, covenant or agreement which gave rise to a termination of this Agreement pursuant to Section 8.1(iii) or Section 8.1(iv). 
  

 32 

 Section 8.3 Expenses. Whether or not the transactions contemplated hereby are consummated, all
costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby and thereby shall be paid by the party incurring such expenses. 
 Section 8.4 Counterparts; Effectiveness. This Agreement may be executed in two or more consecutive counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto
were upon the same instrument, and shall become effective when one or more counterparts have been signed by each of the parties and delivered (by facsimile or otherwise) to the other parties. 
 Section 8.5 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York without regard
to the principles of conflicts of laws thereof. 
 Section 8.6 Notices. Any notices, reports or other correspondence (hereinafter
collectively referred to as “correspondence”) required or permitted to be given hereunder shall be given in writing and shall be deemed given three business days after the date sent by certified or registered mail (return receipt
requested), one business day after the date sent by overnight courier or on the date given by facsimile (with confirmation of receipt) or delivered by hand, to the party to whom such correspondence is required or permitted to be given hereunder.

 To BCE: 
 BCE Inc. 

Bureau 3700 
 1000, rue de La
Gauchetière Quest 
 Montreal, Québec #H3B 4Y7 
 Facsimile: (514) 391-8389 
 Attention: Vice President, General Counsel 
 To SkyTerra: 
 SkyTerra Communications, Inc.

 19 West 44th Street, Suite 507 
 New York, New York 10036 
 Facsimile: 
 Attn: Robert C. Lewis 
  

 33 

 with a copy (which shall not constitute notice) to: 
 Skadden, Arps, Slate, Meagher & Flom LLP 
 Four Times Square 
 New York, New York 10036 
 Facsimile: (917) 777-2918 
 Attn: Gregory A. Fernicola, Esq. 
 Section 8.7 Assignment; Binding Effect. Neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any
of the parties hereto without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective successors and assigns.

 Section 8.8 Severability. Any term or provision of this Agreement which is invalid or unenforceable in any jurisdiction shall, as
to that jurisdiction, be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms and provisions of this Agreement in any other jurisdiction. If any provision of this Agreement
is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as is enforceable. 
 Section 8.9 Entire
Agreement; Non-Assignability; Parties in Interest. This Agreement and the documents and instruments and other agreements specifically referred to herein or delivered pursuant hereto, including the Exhibits and the SkyTerra Disclosure Schedule:
(a) constitute the entire agreement among the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof,
including, without limitation, the Letter of Intent dated September 22, 2005, between Motient Corporation, SkyTerra, TMI and the Other MSV Shareholders (as defined in such Letter of Intent); (b) are not intended to confer upon any other
person (except the BCE Indemnitees and the SkyTerra Indemnitees) any rights or remedies hereunder and (c) shall not be assigned by operation of law or otherwise except as otherwise specifically provided. Without limiting the foregoing, no party
shall be deemed to have made any representation or warranty other than as expressly made herein. 
 Section 8.10 Headings. Headings of
the Articles and Sections of this Agreement are for convenience of the parties only, and shall be given no substantive or interpretive effect whatsoever. 
 Section 8.11 Certain Definitions. References in this Agreement to “subsidiaries” of SkyTerra or BCE shall mean any corporation or other form of legal entity of which more than 50% of the
outstanding voting securities are on the date hereof directly or indirectly owned by SkyTerra or BCE, as the case may be; provided, that MSV shall not be deemed to be a subsidiary of SkyTerra for purposes of 

  

 34 

 
this Agreement or the transactions contemplated by this Agreement. References in this Agreement (except as specifically otherwise defined) to
“affiliates” shall mean, as to any person, any other person which, directly or indirectly, controls, or is controlled by, or is under common control with, such person. As used in this definition, “control” (including, with its
correlative meanings, “controlled by” and “under common control with”) shall mean the possession, directly or indirectly, of the power to direct or cause the direction of management or policies of a person, whether through the
ownership of securities or partnership of other ownership interests, by contract or otherwise. References in the Agreement to “person” shall mean an individual, a corporation, a partnership, an association, a trust or any other entity or
organization, including, without limitation, a Governmental Entity. “Antitrust Laws” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, the Sherman Act, as amended, the Clayton Act, as amended, the Federal Trade
Commission Act, as amended, and any other United States federal or state or foreign statutes, rules, regulations, orders, decrees, administrative or judicial doctrines or other laws that are designed to prohibit, restrict or regulate actions having
the purpose or effect of monopolization or restraint of trade. 
 Section 8.12 Amendments and Waivers. Any term of this Agreement may
be amended and the observance of any term of this Agreement may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of each of the parties hereto. 
 Section 8.13 Specific Performance. The parties to this Agreement agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, the parties to this Agreement hereby agree that each party hereto shall be entitled to an injunction or injunctions to prevent
breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any court of the United States or any state having jurisdiction, in addition to any other remedy to which such party may be entitled at law or in
equity. 
 Section 8.14 Exclusive Jurisdiction. Any suit, action or proceeding seeking to enforce any provision of, or based on any
matter arising out of or in connection with, this Agreement or the transactions contemplated hereby may only be brought in any federal or state court located in the County and State of New York, and each of the parties hereby consents to the
exclusive jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the
laying of the exclusive venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum. Process in any such suit, action or
proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court. Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 8.6 shall
be deemed effective service of process on such party. 
  

 35 

 Section 8.15 Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 [Signature Pages Follow] 
  

 36 

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

					
	BCE INC.
		
	By:	 	/s/ L. Scott Thomson
		 	Name:	 	Scott Thomson
		 	Title:	 	 Executive Vice President,
Corporate Development

	
	SKYTERRA COMMUNICATIONS, INC.
		
	By:	 	/s/ Robert Lewis
		 	Name:	 	Robert Lewis
		 	Title:	 	 Senior Vice President and
General Counsel

  

 [Signature Page to Exchange Agreement]

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