Document:

Purchase Agreement, dated February 8, 2007

 Exhibit 10.1 
 Execution Version 
 PURCHASE AGREEMENT 
 $500,000,000 
 TERRESTAR NETWORKS INC. 
 15% Senior Secured PIK Notes due 2014 
 Purchase Agreement 
 February 8, 2007 
 J.P. Morgan Securities Inc. 
 Lehman Brothers Inc. 
 UBS Securities LLC 
 As Representatives of the 
 several Initial Purchasers listed 
 in Schedule 1 hereto 
 c/o J.P. Morgan Securities Inc. 
 270 Park Avenue 
 New York, New York 10017 
 Ladies and Gentlemen: 
 TerreStar Networks Inc., a Delaware corporation (the “Company”), proposes to issue and sell to the several initial purchasers listed in
Schedule 1 hereto (the “Initial Purchasers”), for whom you are acting as representatives (the “Representatives”), $500,000,000 principal amount of its 15% Senior Secured PIK Notes due 2014 (the “Securities”). The
Securities will be issued pursuant to an Indenture to be dated as of February 14, 2007 (the “Indenture”) among the Company, the guarantors listed in Schedule 2 hereto (the “Guarantors”) and U.S. Bank National Association, as
trustee (the “Trustee”), and will be guaranteed on a senior secured basis by each of the Guarantors (the “Guarantees”). 
 The Securities will be secured on a first priority basis by the security documents listed in Schedule 3 hereto (collectively, the “Security Documents”). 
 The Securities will be sold to the Initial Purchasers without being registered under the Securities Act of 1933, as amended (the “Securities
Act”), in reliance upon an exemption therefrom. The Company has prepared a Canadian preliminary offering memorandum dated January 29, 2007, as supplemented by the Canadian Supplement to the Canadian Preliminary Offering Memorandum dated
February 8, 2007, used in connection with offers and sales in Canada (collectively, the “Canadian Preliminary Offering Memorandum”) and a preliminary 

 
offering memorandum dated January 29, 2007, as supplemented by the Supplement to the Preliminary Offering Memorandum dated February 8, 2007
(collectively, the “Preliminary Offering Memorandum”) and will prepare a Canadian offering memorandum dated the date hereof to be used in connection with offers and sales in Canada (the “Canadian Offering Memorandum”) and an
offering memorandum dated the date hereof (the “Offering Memorandum”) setting forth information concerning the Company, the Guarantors and the Securities. Copies of the Canadian Preliminary Offering Memorandum and the Preliminary Offering
Memorandum have been, and copies of the Canadian Offering Memorandum and the Offering Memorandum will be, delivered by the Company to the Initial Purchasers pursuant to the terms of this Agreement. The Company hereby confirms that it has authorized
the use of the Canadian Preliminary Offering Memorandum, the Preliminary Offering Memorandum, the other Time of Sale Information (as defined below), the Canadian Offering Memorandum and the Offering Memorandum in connection with the offering and
resale of the Securities by the Initial Purchasers in the manner contemplated by this Agreement. Capitalized terms used but not defined herein shall have the meanings given to such terms in the Preliminary Offering Memorandum. 
 At or prior to the time when sales of the Securities were first made (the “Time of Sale”), the following information shall have been prepared
(collectively, the “Time of Sale Information”): the Preliminary Offering Memorandum, as supplemented and amended by the written communications listed on Annex A hereto. 
 The Company hereby confirms its agreement with the several Initial Purchasers concerning the purchase and resale of the Securities, as follows:

 1. Purchase and Resale of the Securities. (a) The Company agrees to issue and sell the Securities to the several Initial
Purchasers as provided in this Agreement, and each Initial Purchaser, on the basis of the representations, warranties and agreements set forth herein and subject to the conditions set forth herein, agrees, severally and not jointly, to purchase from
the Company the respective principal amount of Securities set forth opposite such Initial Purchaser’s name in Schedule 1 hereto at a price equal to 97.5% of the principal amount thereof plus accrued interest, if any, from February 8, 2007
to the Closing Date. The Company will not be obligated to deliver any of the Securities except upon payment for all the Securities to be purchased as provided herein. 
 (b) The Company understands that the Initial Purchasers intend to offer the Securities for resale on the terms set forth in the Time of Sale Information. Each Initial Purchaser, severally and not jointly, represents,
warrants and agrees that: 
 (i) it is a qualified institutional buyer within the meaning of Rule 144A under the Securities
Act (a “QIB”) and an accredited investor within the meaning of Rule 501(a) under the Securities Act; 
 (ii) it has
not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Securities by means of any form of general solicitation or general advertising within the meaning of Rule 502(c) of Regulation D under the
Securities Act 

  

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(“Regulation D”) or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act; and 
 (iii) it has not solicited offers for, or offered or sold, and will not solicit offers for, or offer or sell, the Securities as part of
their initial offering except: 
 (A) within the United States to persons whom it reasonably believes to be QIBs in
transactions pursuant to Rule 144A under the Securities Act (“Rule 144A”) and in connection with each such sale, it has taken or will take reasonable steps to ensure that the purchaser of the Securities is aware that such sale is being
made in reliance on Rule 144A; or 
 (B) in accordance with the restrictions set forth in Annex C hereto. 
 (c) Each Initial Purchaser acknowledges and agrees that the Company and, for purposes of the opinions to be delivered to the Initial Purchasers pursuant
to Sections 6(f), 6(i) and 6(j), counsel for the Company and counsel for the Initial Purchasers, respectively, may rely upon the accuracy of the representations and warranties of the Initial Purchasers, and compliance by the Initial Purchasers with
their agreements, contained in paragraph (b) above (including Annex C hereto), and each Initial Purchaser hereby consents to such reliance. 
 (d) The Company acknowledges and agrees that the Initial Purchasers may offer and sell Securities to or through any affiliate of an Initial Purchaser and that any such affiliate may offer and sell Securities purchased by it to or through
any Initial Purchaser. 
 (e) The Company acknowledges and agrees that the Initial Purchasers are acting solely in the capacity of an
arm’s length contractual counterparty to the Company with respect to the offering of Securities contemplated hereby (including in connection with determining the terms of the offering) and not as financial advisors or fiduciaries to, or agents
of, the Company or any other person. Additionally, neither the Representatives nor any other Initial Purchaser is advising the Company, the Guarantors or any other person as to any legal, tax, investment, accounting or regulatory matters in any
jurisdiction. The Company shall consult with its own advisors concerning such matters and shall be responsible for making its own independent investigation and appraisal of the transactions contemplated hereby, and neither the Representatives nor
any other Initial Purchaser shall have any responsibility or liability to the Company with respect thereto. Any review by the Representatives or any Initial Purchaser of the Company, the Guarantors, and the transactions contemplated hereby or other
matters relating to such transactions will be performed solely for the benefit of the Representatives or such Initial Purchaser, as the case may be, and shall not be on behalf of the Company, the Guarantors or any other person. 
 2. Payment and Delivery. (a) Payment for and delivery of the Securities will be made at the offices of Simpson Thacher & Bartlett
LLP, 425 Lexington Avenue, New York, New York at 9:30 A.M., New York City time, on February 14, 2007, or at such other time or place on the same or such other date, not later than the fifth business day thereafter, as the Representatives and
the Company may agree upon in writing. The time and date of such payment and delivery is referred to herein as the “Closing Date.” 
  

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 (b) Payment for the Securities shall be made by wire transfer in immediately available funds to the
account(s) specified by the Company to the Representatives against delivery to the nominee of The Depository Trust Company (“DTC”), for the account of the Initial Purchasers, of one or more global notes representing the Securities
(collectively, the “Global Note”), with any transfer taxes payable in connection with the sale of the Securities duly paid by the Company. The Global Note will be made available for inspection by the Representatives not later than 1:00
P.M., New York City time, on the business day prior to the Closing Date. 
 3. Representations and Warranties of the Company. The
Company represents and warrants to each Initial Purchaser that: 
 (a) Preliminary Offering Memorandum, Time of Sale Information and
Offering Memorandum. Each of the Preliminary Offering Memorandum and the Canadian Preliminary Offering Memorandum, as of its date, did not, the Time of Sale Information, at the Time of Sale, did not, and at the Closing Date, will not, and the
Canadian Offering Memorandum and the Offering Memorandum, in the form first used by the Initial Purchasers to confirm sales of the Securities and as of the Closing Date, will not, contain any untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the Company makes no representation or warranty with respect to any statements or
omissions made in reliance upon and in conformity with information relating to any Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representatives expressly for use in the Preliminary Offering Memorandum,
the Canadian Preliminary Offering Memorandum, the Time of Sale Information, the Canadian Offering Memorandum or the Offering Memorandum. 
 (b) Additional Written Communications. The Company (including its agents and representatives, other than the Initial Purchasers in their capacity as such) has not prepared, made, used, authorized, approved or referred to and will not
prepare, make, use, authorize, approve or refer to any written communication that constitutes an offer to sell or solicitation of an offer to buy the Securities (each such communication by the Company or its agents and representatives (other than a
communication referred to in clauses (i), (ii) and (iii) below) an “Issuer Written Communication”) other than (i) the Preliminary Offering Memorandum and the Canadian Preliminary Offering Memorandum, (ii) the Offering
Memorandum and the Canadian Offering Memorandum, (iii) the documents listed on Annex A hereto, including a term sheet substantially in the form of Annex B hereto, which constitute part of the Time of Sale Information and (iv) any
electronic road show or other written communications, in each case used in accordance with Section 4(c). Each such Issuer Written Communication, when taken together with the Time of Sale Information, did not, and at the Closing Date will not,
contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided that the Company makes
no representation and warranty with respect to any statements or omissions made in each such Issuer Written Communication in reliance upon and in conformity with information relating to any Initial Purchaser furnished to the Company in writing by
such Initial Purchaser through the Representatives expressly for use in any Issuer Written Communication. 
  

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 (c) Financial Statements. The financial statements and the related notes thereto included in each
of the Time of Sale Information and the Offering Memorandum present fairly in all material respects the financial position of the Company and its subsidiary as of the dates indicated and the results of their operations and their cash flows for the
periods specified; (subject, in the case of quarterly financial statements, to the absence of footnotes and normal year-end audit adjustments); such financial statements have been prepared in conformity with generally accepted accounting principles
applied on a consistent basis throughout the periods covered thereby (except as otherwise disclosed in the Time of Sale Information); and the other financial information included in each of the Time of Sale Information and the Offering Memorandum
has been derived from the accounting records of the Company and its subsidiaries and presents fairly the information shown thereby (except as otherwise disclosed in the Time of Sale Information). 
 (d) No Material Adverse Change. Since the date of the most recent financial statements of the Company included in each of the Time of Sale
Information and the Offering Memorandum (i) there has not been any change in the capital stock or long-term debt of the Guarantors or the Company, or any dividend or distribution of any kind declared, set aside for payment, paid or made by the
Company on any class of capital stock, or any material adverse change, or any development involving a prospective material adverse change, in or affecting the business, properties, management, financial position, results of operations of the
Company; (ii) the Company has not entered into any transaction or agreement that is material to the Company or incurred any liability or obligation, direct or contingent, that is material to the Company; and (iii) the Company has not
sustained any material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or any action, order or decree of any court or arbitrator or
governmental or regulatory authority, except in each case as otherwise disclosed in the Time of Sale Information. 
 (e) Organization and
Good Standing; Investments. Each of the Guarantors and the Company has been duly organized and is validly existing and in good standing under the laws of its respective jurisdiction of organization, is duly qualified to do business and is in
good standing in each jurisdiction in which its respective ownership or lease of property or the conduct of its respective business requires such qualification, and has all power and authority necessary to own or hold its respective properties and
to conduct the businesses in which it is engaged, except where the failure to be so qualified or in good standing or have such power or authority would not, individually or in the aggregate, have a material adverse effect on the business,
properties, management, financial position, results of operations, ability of each of the Guarantors or the Company to perform its obligations under the Transaction Documents (defined below) or prospects of the Company or on the performance by the
Company and the Guarantors of their obligations under the Securities and the Guarantees (a “Material Adverse Effect”). The Company does not own or control, directly or indirectly, any corporation, association or other entity and the
Company (i) does not have or hold, either directly or indirectly, any capital or any other equity securities or interest in, or control (whether by the ownership or control or direction of any securities or any other voting or participating
interest or by contract) of, any other person (other than TerreStar Networks Holdings (Canada) Inc. and TerreStar Networks (Canada) Inc.) and (ii) is not obligated to make and is not bound by any agreement, contract or understanding of any
nature as of the date hereof under which it may become obligated to make any future 

  

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investment in, or capital contribution to, any other person (other than TerreStar Networks Holdings (Canada) Inc. and TerreStar Networks (Canada) Inc.).

 (f) Capitalization. The Company has an authorized capitalization as set forth in each of the Time of Sale Information and the
Offering Memorandum under the heading “Capitalization”. 
 (g) Due Authorization. The Company and each of the Guarantors
have full right, power and authority to execute and deliver this Agreement, the Securities and the Indenture (including each Guarantee set forth therein) (together with the Security Documents, the “Transaction Documents”) and to perform
their respective obligations hereunder and thereunder; and all action required to be taken for the due and proper authorization, execution and delivery of each of the Transaction Documents and the consummation of the transactions contemplated
thereby has been duly and validly taken. 
 (h) The Indenture. The Indenture has been duly authorized by the Company and each of the
Guarantors and, when duly executed and delivered in accordance with its terms by each of the parties thereto, will constitute a valid and legally binding agreement of the Company and each of the Guarantors enforceable against the Company and each of
the Guarantors in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency or similar laws affecting the enforcement of creditors’ rights generally or by equitable principles relating to
enforceability (collectively, the “Enforceability Exceptions”); and on the Closing Date, the Indenture will conform in all material respects to the requirements of the Trust Indenture Act of 1939, as amended (the “Trust Indenture
Act”), and the rules and regulations of the Commission applicable to an indenture that is qualified thereunder. 
 (i) The Securities
and the Guarantees. The Securities have been duly authorized by the Company and, when duly executed, authenticated, issued and delivered as provided in the Indenture and paid for as provided herein, will be duly and validly issued and
outstanding and will constitute valid and legally binding obligations of the Company enforceable against the Company in accordance with their terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture; and
the Guarantees have been duly authorized by each of the Guarantors and, when the Securities have been duly executed, authenticated, issued and delivered as provided in the Indenture and paid for as provided herein, will be valid and legally binding
obligations of each of the Guarantors, enforceable against each of the Guarantors in accordance with their terms, subject to the Enforceability Exceptions, and will be entitled to the benefits of the Indenture. 
 (j) Purchase Agreement. This Agreement has been duly authorized, executed and delivered by the Company. 
 (k) Creation, Enforceability and Perfection of Security Interests. The applicable pledging entity under each Security Document owns the relevant
collateral covered by such Security Document (the “Collateral”), free and clear of any security interest, mortgage, pledge, lien, encumbrance or claim (other than Permitted Liens (as defined in the Indenture)). All filings and other
actions necessary or desirable to perfect and protect the security interest in the Collateral to be created under the Security Documents that are required under the Security Documents have been or will be at or prior to the Closing Date duly made or
taken and are or 

  

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will be at or prior to the Closing Date in full force and effect and, together with the execution and delivery of the Security Documents by the Company and
each Guarantor, will create a valid and perfected first-priority security interest in the Collateral securing the obligations of the Company and each Guarantor. 
 (l) The Security Documents. Each of the Security Documents has been duly authorized by the Company and each of the Guarantors (as applicable) and, when duly executed and delivered in accordance with its terms
by each of the other parties thereto, will constitute a valid and legally binding agreement of the Company and each of the Guarantors enforceable against the Company and each of the Guarantors in accordance with its terms, subject to the
Enforceability Exceptions. 
 (m) Descriptions of the Transaction Documents. Each Transaction Document conforms in all material
respects to the description thereof contained in each of the Time of Sale Information and the Offering Memorandum. 
 (n) No Violation or
Default. Neither any of the Guarantors, nor the Company is (i) in violation of its charter or by-laws or similar organizational documents; (ii) in default, and no event has occurred that, with notice or lapse of time or both, would
constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which any of the Guarantors or the Company is
a party or by which any of the Guarantors or the Company is bound or to which any of the property or assets of the Guarantors or the Company is subject; or (iii) in violation of any law or statute or any judgment, order, rule or regulation of
any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (ii) and (iii) above, for any such default or violation that would not, individually or in the aggregate, have a Material Adverse Effect.

 (o) No Conflicts. The execution, delivery and performance by the Company and each of the Guarantors of each of the Transaction
Documents to which each is a party, the issuance and sale of the Securities (including the Guarantees) and compliance by the Company and each of the Guarantors with the terms thereof and the consummation of the transactions contemplated by the
Transaction Documents will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, or result in the creation or imposition of any lien, charge or encumbrance upon any
property or assets of the Company pursuant to, any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument to which the Company is a party or by which the Company is bound or to which any of the property or assets of the
Company is subject, (ii) result in any violation of the provisions of the charter or by-laws or similar organizational documents of the Guarantors or the Company or (iii) result in the violation of any law or statute or any judgment,
order, rule or regulation of any court or arbitrator or governmental or regulatory authority, except, in the case of clauses (i) and (iii) above, for any such conflict, breach, violation or default that would not, individually or in the
aggregate, have a Material Adverse Effect. 
 (p) No Consents Required. No consent, approval, authorization, order, registration or
qualification of or with any court or arbitrator or governmental or regulatory authority is required for the execution, delivery and performance by the Company and each of the Guarantors of each of the Transaction Documents to which each is a party,
the issuance and sale of the Securities 

  

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(including the Guarantees) and compliance by the Company and each of the Guarantors with the terms thereof and the consummation of the transactions
contemplated by the Transaction Documents, except for (i) such consents, approvals, authorizations, orders and registrations or qualifications as may be required under applicable state securities laws in connection with the purchase and resale
of the Securities by the Initial Purchasers and (ii) such consents, approvals, authorizations, orders and registrations or qualifications the failure of which to obtain or make would not, individually or in the aggregate, reasonably be expected
to have a Material Adverse Effect. 
 (q) Legal Proceedings. Except as described in the Time of Sale Information and the Offering
Memorandum, there are no legal, governmental or regulatory investigations, actions, suits or proceedings pending to which the Company is or may be a party or to which any property of the Company is or may be the subject that, individually or in the
aggregate, if determined adversely to the Company, would reasonably be expected to have a Material Adverse Effect; and, to the best knowledge of the Company, except as described in the Time of Sale Information and the Offering Memorandum, no such
investigations, actions, suits or proceedings are threatened or contemplated by any governmental or regulatory authority or by others. 
 (r)
Independent Accountants. Friedman LLP, who has certified certain financial statements of the Company is, to the best knowledge of the Company, a firm of independent public accountants with respect to the Company within the applicable rules
and regulations adopted by the Commission and the Public Company Accounting Oversight Board (United States) and as required by the Securities Act. 
 (s) Title to Real and Personal Property. The Company has good and marketable title in fee simple to, or have valid rights to lease or otherwise use, all items of real property and good and valid title to, or have valid rights to
lease or otherwise use, all items of personal property, that, in each case, are material to the business of the Company, except, in each case, as would not reasonably be expected to have a Material Adverse Effect. Such property rights are in each
case free and clear of all liens, encumbrances, claims and defects and imperfections of title except those that (i) do not materially interfere with the use made and proposed to be made of such property by the Company or (ii) would not
reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect. 
 (t) Title to Intellectual Property.
The Company owns or possesses, has the valid right to use or can acquire on reasonable terms, adequate rights to use all material patents, patent applications, trademarks, service marks, trade names, trademark registrations, service mark
registrations, copyrights, licenses and know-how (including trade secrets and other unpatented and/or unpatentable proprietary or confidential information, systems or procedures) necessary for the conduct of its business; except where the failure to
own, possess, have the valid right to use or have the ability to acquire would not reasonably be expected to have a Material Adverse Effect; and, to the Company’s knowledge, the conduct of its business does not conflict in any material respect
with any such rights of others, and the Company has not received any notice of any claim of infringement of or conflict with any such rights of others, except to the extent as would not reasonably be expected to have a Material Adverse Effect.

  

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 (u) No Undisclosed Relationships. No relationship, direct or indirect, exists between or among the
Company, on the one hand, and the directors, officers, stockholders or other affiliates of the Company, on the other, that would be required by the Securities Act to be described in a registration statement to be filed with the Securities and
Exchange Commission (the “Commission”) and that is not so described in each of the Time of Sale Information and the Offering Memorandum. 
 (v) Investment Company Act. The Company is not, and after giving effect to the offering and sale of the Securities and the application of the proceeds thereof as described in each of the Time of Sale Information and the Offering
Memorandum will not be, an “investment company” within the meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder (collectively, the “Investment Company Act”).

 (w) Taxes. The Company has filed all federal, state and foreign income and franchise taxes required to be filed through the date
hereof, except where the failure to so file such returns would not reasonably be expected, individually or in the aggregate, to have a Material Adverse Effect and has paid all taxes shown thereon; and except as otherwise disclosed in the Time of
Sale Information and the Offering Memorandum, there is no tax deficiency that has been, or could reasonably be expected to be, asserted against the Company or any of its properties or assets that could reasonably be expected to result, individually
or in the aggregate, in a Material Adverse Effect. 
 (x) Licenses and Permits. Except as described in each of the Time of Sale
Information and the Offering Memorandum, the Company possesses all licenses, certificates, permits and other authorizations issued by, and has made all declarations and filings with, the appropriate federal, state, local or foreign governmental or
regulatory authorities that are necessary for the ownership or lease of its respective properties or the conduct of its business as described in each of the Time of Sale Information and the Offering Memorandum, except where the failure to possess or
make the same would not, individually or in the aggregate, have a Material Adverse Effect; and except as described in each of the Time of Sale Information and the Offering Memorandum, the Company has not received notice of any revocation or
modification of any such license, certificate, permit or authorization or has any reason to believe that any such license, certificate, permit or authorization will not be renewed in the ordinary course. 
 (y) No Labor Disputes. No labor disturbance by or dispute with employees of the Company exists or, to the best knowledge of the Company, is
contemplated or threatened, except as would not have a Material Adverse Effect. 
 (z) Compliance With Environmental Laws.
(i) The Company (x) is, and at all prior times was, in compliance with any and all applicable federal, state, local and foreign laws, rules, regulations, requirements, decisions and orders relating to the protection of human health or
safety, the environment, natural resources, hazardous or toxic substances or wastes, pollutants or contaminants (collectively, “Environmental Laws”), (y) has received and is in compliance with all permits, licenses, certificates or
other authorizations or approvals required of them under applicable Environmental Laws to conduct its business, and (z) has not received notice of any actual or potential liability under or relating to any Environmental Laws, including for the

  

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investigation or remediation of any disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants, and has no knowledge of any
event or condition that would reasonably be expected to result in any such notice, and (ii) there are no costs or liabilities associated with Environmental Laws of or relating to the Company, except in the case of each of (i) and
(ii) above, for any such failure to comply, or failure to receive required permits, licenses or approvals, or cost or liability, as would not, individually or in the aggregate, have a Material Adverse Effect; and (iii) except as described
in each of the Time of Sale Information and the Offering Memorandum, (x) there are no proceedings that are pending, or that are known to be contemplated, against the Company under any Environmental Laws in which a governmental entity is also a
party, other than such proceedings regarding which it is reasonably believed no monetary sanctions of $100,000 or more will be imposed, (y) the Company is not aware of any issues regarding compliance with Environmental Laws, or liabilities or
other obligations under Environmental Laws or concerning hazardous or toxic substances or wastes, pollutants or contaminants, that could reasonably be expected to have a material effect on the capital expenditures, earnings or competitive position
of the Company, and (z) the Company does not anticipate material capital expenditures relating to any Environmental Laws. 
 (aa)
Compliance With ERISA. (i) Each employee benefit plan, within the meaning of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), for which the Company or any member of its
“Controlled Group” (defined as any organization which is a member of a controlled group of corporations within the meaning of Section 414 of the Internal Revenue Code of 1986, as amended (the “Code”)) would have any
liability (each, a “Plan”) has been maintained in compliance with its terms and the requirements of any applicable statutes, orders, rules and regulations, including but not limited to ERISA and the Code, except to the extent that any
non-compliance could not reasonably be expected to have a Material Adverse Effect; (ii) no prohibited transaction, within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan excluding
transactions effected pursuant to a statutory or administrative exemption, except to the extent that any non-compliance could not have a Material Adverse Effect; (iii) for each Plan that is subject to the funding rules of Section 412 of
the Code or Section 302 of ERISA, no “accumulated funding deficiency” as defined in Section 412 of the Code, whether or not waived, has occurred or is reasonably expected to occur; (iv) the fair market value of the assets of
each Plan exceeds the present value of all benefits accrued under such Plan (determined based on those assumptions used to fund such Plan); (v) no “reportable event” (within the meaning of Section 4043(c) of ERISA) has occurred
or is reasonably expected to occur; and (vi) neither the Company nor any member of the Controlled Group has incurred, nor reasonably expects to incur, any liability under Title IV of ERISA (other than contributions to the Plan or premiums to
the PBGC, in the ordinary course and without default) in respect of a Plan (including a “multiemployer plan”, within the meaning of Section 4001(a)(3) of ERISA) that could reasonably be expected to have a Material Adverse Effect.

 (bb) Accounting Controls. The Company maintains a system of internal accounting controls sufficient, to the best knowledge of the
Company, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles, including, but not limited to
internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions 

  

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are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset
accountability; (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. Except as disclosed in each of the Time of Sale Information and the Offering Memorandum, there are no material weaknesses or significant deficiencies in the Company’s internal
controls. 
 (cc) Insurance. The Company has insurance covering its properties, operations, personnel and businesses, which insurance
is in amounts and insures against such losses and risks as are adequate to protect the Company and its business; and the Company has not (i) received notice from any insurer or agent of such insurer that capital improvements or other
expenditures are required or necessary to be made in order to continue such insurance or (ii) any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar
coverage at reasonable cost from similar insurers as may be necessary to continue its business. 
 (dd) No Unlawful Payments. Neither
the Company nor, to the best knowledge of the Company, any director, officer, agent, employee or other person associated with or acting on behalf of the Company has (i) used any corporate funds for any unlawful contribution, gift, entertainment
or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision
of the Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment. 
 (ee) Compliance with Money Laundering Laws. The operations of the Company are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign
Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any
governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company with respect to the Money Laundering
Laws is pending or, to the best knowledge of the Company, threatened. 
 (ff) Compliance with OFAC. None of the Company or, to the
knowledge of the Company, any director, officer, agent, employee or affiliate of the Company is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Department of the Treasury (“OFAC”);
and the Company will not directly or indirectly use the proceeds of the offering of the Securities hereunder, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the
purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC. 
 (gg) Solvency. On
and immediately after the Closing Date, the Company (after giving effect to the issuance of the Securities and the other transactions related thereto as described in each of the Time of Sale Information and the Offering Memorandum) will be Solvent,
provided, however, that the Company’s liquidity and ability to fund its capital requirements and 

  

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operations are subject to the factors described in the Time of Sale Information and the Offering Memorandum under “Management’s discussion and
analysis of financial condition and results of operations – Liquidity and capital resources.” As used in this paragraph, the term “Solvent” means, with respect to a particular date, that on such date (i) the present fair
market value (or present fair saleable value) of the assets of the Company is not less than the total amount required to pay the liabilities of the Company on its total existing debts and liabilities (including contingent liabilities) as they become
absolute and matured; (ii) assuming consummation of the issuance of the Securities as contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum, the Company is not incurring debts or liabilities beyond its ability
to pay as such debts and liabilities mature; (iii) the Company is not engaged in any business or transaction, and does not propose to engage in any business or transaction, for which its property would constitute unreasonably small capital
after giving due consideration to the prevailing practice in the industry in which the Company is engaged; and (iv) the Company is not a defendant in any civil action that would result in a judgment that the Company is or would become unable to
satisfy. 
 (hh) No Broker’s Fees. The Company is not a party to any contract, agreement or understanding with any person (other
than this Agreement) that would give rise to a valid claim against any of them or any Initial Purchaser for a brokerage commission, finder’s fee or like payment in connection with the offering and sale of the Securities. 
 (ii) Rule 144A Eligibility. On the Closing Date, the Securities will not be of the same class as securities listed on a national securities
exchange registered under Section 6 of the Exchange Act or quoted in an automated inter-dealer quotation system; and each of the Preliminary Offering Memorandum and the Offering Memorandum, as of its respective date, contains or will contain
all the information that, if requested by a prospective purchaser of the Securities, would be required to be provided to such prospective purchaser pursuant to Rule 144A(d)(4) under the Securities Act. 
 (jj) No Integration. Neither the Company nor any of its affiliates (as defined in Rule 501(b) of Regulation D) has, directly or through any agent,
sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the Securities Act), that is or will be integrated with the sale of the Securities in a manner that would require registration of the
Securities under the Securities Act. 
 (kk) No General Solicitation or Directed Selling Efforts. None of the Company or any of its
affiliates or any other person acting on its or their behalf (other than the Initial Purchasers, as to which no representation is made) has (i) solicited offers for, or offered or sold, the Securities by means of any form of general
solicitation or general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act or (ii) engaged in any directed selling efforts
within the meaning of Regulation S under the Securities Act (“Regulation S”), and all such persons have complied with the offering restrictions requirement of Regulation S. 
 (ll) Securities Law Exemptions. Assuming the accuracy of the representations and warranties of the Initial Purchasers contained in
Section 1(b) (including Annex C hereto) and their compliance with their agreements set forth therein, it is not necessary, in connection with 

  

 12 

 
the issuance and sale of the Securities to the Initial Purchasers and the offer, resale and delivery of the Securities by the Initial Purchasers in the
manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum, to register the Securities under the Securities Act or to qualify the Indenture under the Trust Indenture Act. 
 (mm) No Stabilization. Neither the Company nor any of the Guarantors has taken, directly or indirectly, any action designed to or that could
reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities. 
 (nn) Margin Rules.
Neither the issuance, sale and delivery of the Securities nor the application of the proceeds thereof by the Company as described in each of the Time of Sale Information and the Offering Memorandum will violate Regulation T, U or X of the Board of
Governors of the Federal Reserve System or any other regulation of such Board of Governors. 
 (oo) Forward-Looking Statements. No
forward-looking statement (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) contained in any of the Time of Sale Information or the Offering Memorandum has been made or reaffirmed without a
reasonable basis or has been disclosed other than in good faith. 
 (pp) Statistical and Market Data. Nothing has come to the
attention of the Company that has caused the Company to believe that the statistical and market-related data included in each of the Time of Sale Information and the Offering Memorandum is not based on or derived from sources that are reliable and
accurate in all material respects. 
 4. Further Agreements of the Company. The Company covenants and agrees with each Initial
Purchaser that: 
 (a) Delivery of Copies. The Company will deliver, without charge, to the Initial Purchasers as many copies of the
Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer Written Communication and the Offering Memorandum (including all amendments and supplements thereto) as the Representatives may reasonably request. 
 (b) Offering Memorandum, Amendments or Supplements. Before finalizing the Offering Memorandum or making or distributing any amendment or
supplement to any of the Time of Sale Information or the Offering Memorandum, the Company will furnish to the Representatives and counsel for the Initial Purchasers a copy of the proposed Offering Memorandum or such amendment or supplement for
review, and will not distribute any such proposed Offering Memorandum, amendment or supplement to which the Representatives reasonably object. 
 (c) Additional Written Communications. Before making, using, authorizing, approving or referring to any Issuer Written Communication, the Company will furnish to the Representatives and counsel for the Initial Purchasers a copy of
such written communication for review and will not make, use, authorize, approve or refer to any such written communication to which the Representatives reasonably object. 
 (d) Notice to the Representatives. The Company will advise the Representatives promptly, and confirm such advice in writing, (i) of the
issuance by any governmental or 

  

 13 

 
regulatory authority of any order preventing or suspending the use of any of the Time of Sale Information, any Issuer Written Communication or the Offering
Memorandum or the initiation or threatening of any proceeding for that purpose; (ii) of the occurrence of any event at any time prior to the completion of the initial offering of the Securities as a result of which any of the Time of Sale
Information, any Issuer Written Communication or the Offering Memorandum as then amended or supplemented would include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the
light of the circumstances existing when such Time of Sale Information, Issuer Written Communication or the Offering Memorandum is delivered to a purchaser, not misleading; and (iii) of the receipt by the Company of any notice with respect to
any suspension of the qualification of the Securities for offer and sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose; and the Company will use its reasonable best efforts to prevent the issuance of any
such order preventing or suspending the use of any of the Time of Sale Information, any Issuer Written Communication or the Offering Memorandum or suspending any such qualification of the Securities and, if any such order is issued, will obtain as
soon as possible the withdrawal thereof. 
 (e) Time of Sale Information. If at any time prior to the Closing Date (i) any event
shall occur or condition shall exist as a result of which any of the Time of Sale Information as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading or (ii) it is necessary to amend or supplement any of the Time of Sale Information to comply with law, the Company will immediately notify the
Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above, furnish to the Initial Purchasers such amendments or supplements to any of the Time of Sale Information as may be necessary so that the statements in any of
the Time of Sale Information as so amended or supplemented will not, in light of the circumstances under which they were made, be misleading or so that any of the Time of Sale Information will comply with law. 
 (f) Ongoing Compliance of the Offering Memorandum. If at any time prior to the completion of the initial offering of the Securities (i) any
event shall occur or condition shall exist as a result of which the Offering Memorandum as then amended or supplemented would include any untrue statement of a material fact or omit to state any material fact necessary in order to make the
statements therein, in the light of the circumstances existing when the Offering Memorandum is delivered to a purchaser, not misleading or (ii) it is necessary to amend or supplement the Offering Memorandum to comply with law, the Company will
immediately notify the Initial Purchasers thereof and forthwith prepare and, subject to paragraph (b) above, furnish to the Initial Purchasers such amendments or supplements to the Offering Memorandum as may be necessary so that the statements
in the Offering Memorandum as so amended or supplemented will not, in the light of the circumstances existing when the Offering Memorandum is delivered to a purchaser, be misleading or so that the Offering Memorandum will comply with law.

 (g) Blue Sky Compliance. The Company will qualify the Securities for offer and sale under the securities or Blue Sky laws of such
jurisdictions as the Representatives shall reasonably request and will continue such qualifications in effect so long as required for the 

  

 14 

 
offering and resale of the Securities; provided that neither the Company nor any of the Guarantors shall be required to (i) qualify as a foreign
corporation or other entity or as a dealer in securities in any such jurisdiction where it would not otherwise be required to so qualify, (ii) file any general consent to service of process in any such jurisdiction or (iii) subject itself
to taxation in any such jurisdiction if it is not otherwise so subject. 
 (h) Clear Market. During the period from the date hereof
through and including the date that is 90 days after the date hereof, the Company will not, without the prior written consent of J.P. Morgan Securities Inc., offer, sell, contract to sell or otherwise dispose of any debt securities issued or
guaranteed by the Company and having a maturity of more than one year. 
 (i) Use of Proceeds. The Company will apply the net proceeds
from the sale of the Securities as described in each of the Time of Sale Information and the Offering Memorandum under the heading “Use of proceeds.” 
 (j) Supplying Information. While the Securities remain outstanding and are “restricted securities” within the meaning of Rule 144(a)(3) under the Securities Act, the Company will, during any period in
which the Company is not subject to and in compliance with Section 13 or 15(d) of the Exchange Act, furnish to holders of the Securities and prospective purchasers of the Securities designated by such holders, upon the request of such holders
or such prospective purchasers, the information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act. 
 (k)
PORTAL and DTC. The Company will assist the Initial Purchasers in arranging for the Securities to be designated Private Offerings, Resales and Trading through Automated Linkages (“PORTAL”) Market securities in accordance with the
rules and regulations adopted by the National Association of Securities Dealers, Inc. (the “NASD”) relating to trading in the PORTAL Market and for the Securities to be eligible for clearance and settlement through DTC. 
 (l) No Resales by the Company. The Company will not, and will not permit any of its affiliates (as defined in Rule 144 under the Securities
Act) to, resell any of the Securities that have been acquired by any of them, except for Securities purchased by the Company or any of its affiliates and resold in a transaction registered under the Securities Act. 
 (m) No Integration. Neither the Company nor any of its affiliates (as defined in Rule 501(b) of Regulation D) will, directly or through any agent,
sell, offer for sale, solicit offers to buy or otherwise negotiate in respect of, any security (as defined in the Securities Act), that is or will be integrated with the sale of the Securities in a manner that would require registration of the
Securities under the Securities Act. 
 (n) No General Solicitation or Directed Selling Efforts. None of the Company or any of its
affiliates or any other person acting on its or their behalf (other than the Initial Purchasers, as to which no covenant is given) will (i) solicit offers for, or offer or sell, the Securities by means of any form of general solicitation or
general advertising within the meaning of Rule 502(c) of Regulation D or in any manner involving a public offering within the meaning of Section 4(2) of the Securities Act or (ii) engage in any directed selling efforts within the meaning
of Regulation S, and all such persons will comply with the offering restrictions requirement of Regulation S. 
  

 15 

 (o) No Stabilization. The Company will not take, directly or indirectly, any action designed to or
that could reasonably be expected to cause or result in any stabilization or manipulation of the price of the Securities. 
 (p) Security
Interests. The Company (i) shall use its reasonable best efforts to complete on or prior to the Closing Date all filings and other similar actions required in connection with the perfection of the security interests as and to the extent
required by the Security Documents and (ii) shall take all actions necessary to maintain such security interests and to perfect security interests in any collateral acquired after the Closing Date, in each case as and to the extent required by
the Security Documents. 
 5. Certain Agreements of the Initial Purchasers. Each Initial Purchaser hereby represents and agrees that
it has not and will not use, authorize use of, refer to, or participate in the planning for use of, any written communication that constitutes an offer to sell or the solicitation of an offer to buy the Securities other than (i) the Preliminary
Offering Memorandum and the Offering Memorandum, (ii) a written communication that contains no “issuer information” (as defined in Rule 433(h)(2) under the Securities Act) that was not included (including through incorporation by
reference) in the Preliminary Offering Memorandum or the Offering Memorandum, (iii) any written communication listed on Annex A or prepared pursuant to Section 4(c) above (including any electronic road show), (iv) any written
communication prepared by such Initial Purchaser and approved by the Company in advance in writing or (v) any written communication relating to or that contains the terms of the Securities and/or other information that was included (including
through incorporation by reference) in the Preliminary Offering Memorandum or the Offering Memorandum. 
 6. Conditions of Initial
Purchasers’ Obligations. The obligation of each Initial Purchaser to purchase Securities on the Closing Date as provided herein is subject to the performance by the Company of its covenants and other obligations hereunder and to the
following additional conditions: 
 (a) Representations and Warranties. The representations and warranties of the Company contained
herein shall be true and correct on the date hereof and on and as of the Closing Date; and the statements of the Company and its officers made in any certificates delivered pursuant to this Agreement shall be true and correct on and as of the
Closing Date. 
 (b) No Downgrade. Subsequent to the earlier of (A) the Time of Sale and (B) the execution and delivery of
this Agreement, (i) no downgrading shall have occurred in the rating accorded the Securities or any other debt securities or preferred stock issued or guaranteed by the Company by any “nationally recognized statistical rating
organization”, as such term is defined by the Commission for purposes of Rule 436(g)(2) under the Securities Act; and (ii) no such organization shall have publicly announced that it has under surveillance or review, or has changed its
outlook with respect to, its rating of the Securities or of any other debt securities or preferred stock issued or guaranteed by the Company (other than an announcement with positive 

  

 16 

 
implications of a possible upgrading or an announcement which reaffirms, reiterates or restates the substance of any announcement made prior to the date
hereof). 
 (c) No Material Adverse Change. No event or condition of a type described in Section 3(d) hereof shall have occurred
or shall exist, which event or condition is not described in each of the Time of Sale Information (excluding any amendment or supplement thereto) and the Offering Memorandum (excluding any amendment or supplement thereto) the effect of which in the
judgment of the Representatives makes it impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale Information and the Offering
Memorandum. 
 (d) Officer’s Certificate. The Representatives shall have received on and as of the Closing Date a certificate of
an executive officer of the Company who has specific knowledge of the Company’s financial matters and is satisfactory to the Representatives (i) confirming that such officer has carefully reviewed the Time of Sale Information and the
Offering Memorandum and, to the best knowledge of such officer, the representations set forth in Sections 3(a) and 3(b) hereof are true and correct, (ii) confirming that the other representations and warranties of the Company in this Agreement
are true and correct and that the Company has complied with all agreements and satisfied all conditions on their part to be performed or satisfied hereunder at or prior to the Closing Date and (iii) to the effect set forth in paragraphs
(b) and (c) above. 
 (e) Comfort Letters. On the date of this Agreement and on the Closing Date, Friedman LLP shall have
furnished to the Representatives, at the request of the Company, letters, dated the respective dates of delivery thereof and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the Representatives, containing
statements and information of the type customarily included in accountants’ “comfort letters” to underwriters with respect to the financial statements and certain financial information contained in each of the Time of Sale Information
and the Offering Memorandum; provided that the letter delivered on the Closing Date shall use a “cut-off” date no more than three business days prior to the Closing Date. 
 (f) Opinion and 10b-5 Statement of U.S. Counsel for the Company and the Guarantors. Gibson Dunn & Crutcher LLP, U.S. counsel for the
Company and the Guarantors, shall have furnished to the Representatives, at the request of the Company, their written opinion and 10b-5 statement, dated the Closing Date and addressed to the Initial Purchasers, in form and substance reasonably
satisfactory to the Representatives. 
 (g) Opinion of U.S. Regulatory Counsel for the Company and the Guarantors. Goldberg, Godles,
Wiener and Wright, U.S. regulatory counsel for the Company and the Guarantors, shall have furnished to the Representatives, at the request of the Company, their written opinion, dated the Closing Date and addressed to the Initial Purchasers, in form
and substance reasonably satisfactory to the Representatives. 
 (h) Opinion and 10b-5 Statement of General Counsel. The General
Counsel of the Company shall have furnished to the Representatives his written opinion and 10b-5 statement dated the Closing Date and addressed to the Initial Purchasers, in form and substance reasonably satisfactory to the Representatives.

  

 17 

 (i) Opinion of Canadian Counsel for the Company and the Guarantors. Fraser Milner Casgrain LLP,
Canadian counsel for the Company and the Guarantors, shall have furnished to the Representatives, at the request of the Company, their written opinion, dated the Closing Date and addressed to the Initial Purchasers, in form and substance reasonably
satisfactory to the Representatives. 
 (j) Opinion and 10b-5 Statement of Counsel for the Initial Purchasers. The Representatives
shall have received on and as of the Closing Date an opinion and 10b-5 statement of Simpson Thacher & Bartlett LLP, counsel for the Initial Purchasers, with respect to such matters as the Representatives may reasonably request, and such
counsel shall have received such documents and information as they may reasonably request to enable them to pass upon such matters. 
 (k)
No Legal Impediment to Issuance. No action shall have been taken and no statute, rule, regulation or order shall have been enacted, adopted or issued by any federal, state, provincial or foreign governmental or regulatory authority that
would, as of the Closing Date, prevent the issuance or sale of the Securities or the issuance of the Guarantees; and no injunction or order of any federal, state or foreign court shall have been issued that would, as of the Closing Date, prevent the
issuance or sale of the Securities or the issuance of the Guarantees. 
 (l) Good Standing. The Representatives shall have received on
and as of the Closing Date satisfactory evidence of the good standing of each of the Guarantors and the Company in their respective jurisdictions of organization, in each case in writing or any standard form of telecommunication, from the
appropriate governmental authorities of such jurisdictions. 
 (m) PORTAL and DTC. The Securities shall have been approved by the NASD
for trading in the PORTAL Market and shall be eligible for clearance and settlement through DTC. 
 (n) Security Documents. The
Security Documents shall have been duly executed and delivered by the parties thereto, the security interests created pursuant thereto shall be effective and U.S. Bank National Association, as collateral agent, shall hold a valid and perfected
first-priority security interest in the Collateral (subject to any Permitted Liens (as defined in the Indenture)) securing the obligations of the Company and the Guarantors, in each case, for the benefit of the Trustee and the benefit of holders of
the Securities on or prior to, and as of, the Closing Date. 
 (o) Lien Searches. The Representatives shall have received the results
of a recent lien search in each of the jurisdictions where assets of the Company and the Guarantors covered by the Security Documents are located and any jurisdictions in which valid filings with respect to such assets of the Company and the
Guarantors may be in effect, and such search shall reveal no liens on any of the assets of the Company or the Guarantors (other than Permitted Liens (as defined in the Indenture)). 
 (p) Additional Documents. On or prior to the Closing Date, the Company and the Guarantors shall have furnished to the Representatives such further
certificates and documents as the Representatives may reasonably request. 
  

 18 

 All opinions, letters, certificates and evidence mentioned above or elsewhere in this Agreement shall be
deemed to be in compliance with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Initial Purchasers. 
 7. Indemnification and Contribution. 
 (a) Indemnification of the Initial Purchasers. The
Company agrees to indemnify and hold harmless each Initial Purchaser, its affiliates, directors and officers and each person, if any, who controls such Initial Purchaser within the meaning of Section 15 of the Securities Act or Section 20
of the Exchange Act, from and against any and all losses, claims, damages and liabilities (including, without limitation, legal fees and other expenses incurred in connection with any suit, action or proceeding or any claim asserted, as such fees
and expenses are incurred), joint or several, that arise out of, or are based upon, any untrue statement or alleged untrue statement of a material fact contained in the Canadian Preliminary Offering Memorandum, the Preliminary Offering Memorandum,
any of the other Time of Sale Information, any Issuer Written Communication, the Canadian Offering Memorandum or the Offering Memorandum (or any amendment or supplement thereto) or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, in each case except insofar as such losses, claims, damages or liabilities arise out
of, or are based upon, any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with any information relating to any Initial Purchaser furnished to the Company in writing by such Initial
Purchaser through the Representatives expressly for use therein. 
 (b) Indemnification of the Company. Each Initial Purchaser agrees,
severally and not jointly, to indemnify and hold harmless the Company, each of its directors and officers and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the
Exchange Act to the same extent as the indemnity set forth in paragraph (a) above, but only with respect to any losses, claims, damages or liabilities that arise out of, or are based upon, any untrue statement or omission or alleged untrue
statement or omission made in reliance upon and in conformity with any information relating to such Initial Purchaser furnished to the Company in writing by such Initial Purchaser through the Representatives expressly for use in the Canadian
Preliminary Offering Memorandum, the Preliminary Offering Memorandum, any of the other Time of Sale Information, any Issuer Written Communication, the Canadian Offering Memorandum or the Offering Memorandum (or any amendment or supplement thereto),
it being understood and agreed that the only such information consists of the following: the statements concerning the Initial Purchasers contained in the third paragraph, the fifth and sixth sentences of the tenth paragraph and the twelfth
paragraph under the heading “Plan of distribution.” 
 (c) Notice and Procedures. If any suit, action, proceeding (including
any governmental or regulatory investigation), claim or demand shall be brought or asserted against any person in respect of which indemnification may be sought pursuant to either paragraph (a) or (b) above, such person (the
“Indemnified Person”) shall promptly notify the person against whom such indemnification may be sought (the “Indemnifying Person”) in writing; provided that the failure to notify the Indemnifying Person shall not relieve
it from any liability that it may have 

  

 19 

 
under paragraphs (a) and (b) of this Section 7 except to the extent that it has been materially prejudiced (through the forfeiture of
substantive rights or defenses) by such failure; and provided, further, that the failure to notify the Indemnifying Person shall not relieve it from any liability that it may have to an Indemnified Person otherwise than under
paragraphs (a) and (b) of this Section 7. If any such proceeding shall be brought or asserted against an Indemnified Person and it shall have notified the Indemnifying Person thereof, the Indemnifying Person shall retain counsel
reasonably satisfactory to the Indemnified Person (who shall not, without the consent of the Indemnified Person, be counsel to the Indemnifying Person) to represent the Indemnified Person and any others entitled to indemnification pursuant to this
Section 7 that the Indemnifying Person may designate in such proceeding and shall pay the fees and expenses of such proceeding and shall pay the fees and expenses of such counsel related to such proceeding, as incurred. In any such proceeding,
any Indemnified Person shall have the right to retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Person unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed to the contrary; (ii) the Indemnifying Person has failed within a reasonable time to retain counsel reasonably satisfactory to the Indemnified Person; (iii) the Indemnified Person shall have reasonably concluded that there
may be legal defenses available to it that are different from or in addition to those available to the Indemnifying Person; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Indemnifying Person
and the Indemnified Person and representation of both parties by the same counsel would be inappropriate due to actual or potential differing interests between them. It is understood and agreed that the Indemnifying Person shall not, in connection
with any proceeding or related proceeding in the same jurisdiction, be liable for the fees and expenses of more than one separate firm (in addition to any local counsel) for all Indemnified Persons, and that all such fees and expenses shall be
reimbursed as they are incurred. Any such separate firm for any Initial Purchaser, its affiliates, directors and officers and any control persons of such Initial Purchaser shall be designated in writing by J.P. Morgan Securities Inc. and any such
separate firm for the Company, its respective directors and officers and any control persons of the Company shall be designated in writing by the Company. The Indemnifying Person shall not be liable for any settlement of any proceeding effected
without its written consent, but if settled with such consent or if there be a final judgment for the plaintiff, the Indemnifying Person agrees to indemnify each Indemnified Person from and against any loss or liability by reason of such settlement
or judgment. No Indemnifying Person shall, without the written consent of the Indemnified Person (which consent shall not be unreasonably withheld), effect any settlement of any pending or threatened proceeding in respect of which any Indemnified
Person is or could have been a party and indemnification could have been sought hereunder by such Indemnified Person, unless such settlement (x) includes an unconditional release of such Indemnified Person, in form and substance reasonably
satisfactory to such Indemnified Person, from all liability on claims that are the subject matter of such proceeding and (y) does not include any statement as to or any admission of fault, culpability or a failure to act by or on behalf of such
Indemnified Person. 
 (d) Contribution. If the indemnification provided for in paragraphs (a) and (b) above is unavailable
to an Indemnified Person or insufficient in respect of any losses, claims, damages or liabilities referred to therein, then each Indemnifying Person under such paragraph, in lieu of indemnifying such Indemnified Person thereunder, shall contribute
to the amount paid or payable by such Indemnified Person as a result of such losses, claims, damages or liabilities (i) in such proportion as is appropriate to reflect the relative benefits received by the Company on the one 

  

 20 

 
hand and the Initial Purchasers on the other from the offering of the Securities or (ii) if the allocation provided by clause (i) is not permitted
by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (i) but also the relative fault of the Company on the one hand and the Initial Purchasers on the other in connection with
the statements or omissions that resulted in such losses, claims, damages or liabilities, as well as any other relevant equitable considerations. The relative benefits received by the Company on the one hand and the Initial Purchasers on the other
shall be deemed to be in the same respective proportions as the net proceeds (before deducting expenses) received by the Company from the sale of the Securities and the total discounts and commissions received by the Initial Purchasers in connection
therewith, as provided in this Agreement, bear to the aggregate offering price of the Securities. The relative fault of the Company on the one hand and the Initial Purchasers on the other shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the Company or by the Initial Purchasers and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such statement or omission. 
 (e) Limitation on Liability. The
Company and the Initial Purchasers agree that it would not be just and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such
purpose) or by any other method of allocation that does not take account of the equitable considerations referred to in paragraph (d) above. The amount paid or payable by an Indemnified Person as a result of the losses, claims, damages and
liabilities referred to in paragraph (d) above shall be deemed to include, subject to the limitations set forth above, any legal or other expenses incurred by such Indemnified Person in connection with any such action or claim. Notwithstanding
the provisions of this Section 7, in no event shall an Initial Purchaser be required to contribute any amount in excess of the amount by which the total discounts and commissions received by such Initial Purchaser with respect to the offering
of the Securities exceeds the amount of any damages that such Initial Purchaser has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission. No person guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Initial Purchasers’ obligations to contribute pursuant to this
Section 7 are several in proportion to their respective purchase obligations hereunder and not joint. 
 (f) Non-Exclusive
Remedies. The remedies provided for in this Section 7 are not exclusive and shall not limit any rights or remedies that may otherwise be available to any Indemnified Person at law or in equity. 
 8. Termination. This Agreement may be terminated in the absolute discretion of J.P. Morgan Securities Inc., by notice to the Company, if after the
execution and delivery of this Agreement and on or prior to the Closing Date (i) trading generally shall have been suspended or materially limited on the New York Stock Exchange or the over-the-counter market; (ii) trading of any
securities issued or guaranteed by the Company or any of the Guarantors shall have been suspended on any exchange or in any over-the-counter market; (iii) a general moratorium on commercial banking activities shall have been declared by federal
or New York State authorities; or (iv) there shall have occurred any outbreak or escalation of hostilities or any change in 
  

 21 

 
financial markets or any calamity or crisis, either within or outside the United States, that, in the judgment of the J.P. Morgan Securities Inc., is
material and adverse and makes it impracticable or inadvisable to proceed with the offering, sale or delivery, of the Securities on the terms and in the manner contemplated by this Agreement, the Time of Sale Information and the Offering Memorandum.

 9. Defaulting Initial Purchaser. (a) If, on the Closing Date, any Initial Purchaser defaults on its obligation to purchase the
Securities that it has agreed to purchase hereunder, the non-defaulting Initial Purchasers may in their discretion arrange for the purchase of such Securities by other persons satisfactory to the Company on the terms contained in this Agreement. If,
within 36 hours after any such default by any Initial Purchaser, the non-defaulting Initial Purchasers do not arrange for the purchase of such Securities, then the Company shall be entitled to a further period of 36 hours within which to procure
another person or persons satisfactory to the non-defaulting Initial Purchasers to purchase such Securities on such terms. If other persons become obligated or agree to purchase the Securities of a defaulting Initial Purchaser, either the
non-defaulting Initial Purchasers or the Company may postpone the Closing Date for up to five full business days in order to effect any changes that in the opinion of counsel for the Company or counsel for the Initial Purchasers may be necessary in
the Time of Sale Information, the Offering Memorandum or in any other document or arrangement, and the Company agrees to promptly prepare any amendment or supplement to the Time of Sale Information or the Offering Memorandum that effects any such
changes. As used in this Agreement, the term “Initial Purchaser” includes, for all purposes of this Agreement unless the context otherwise requires, any person not listed in Schedule 1 hereto that, pursuant to this Section 9,
purchases Securities that a defaulting Initial Purchaser agreed but failed to purchase. 
 (b) If, after giving effect to any arrangements
for the purchase of the Securities of a defaulting Initial Purchaser or Initial Purchasers by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that
remains unpurchased does not exceed one-eleventh of the aggregate principal amount of all the Securities, then the Company shall have the right to require each non-defaulting Initial Purchaser to purchase the principal amount of Securities that such
Initial Purchaser agreed to purchase hereunder plus such Initial Purchaser’s pro rata share (based on the principal amount of Securities that such Initial Purchaser agreed to purchase hereunder) of the Securities of such defaulting
Initial Purchaser or Initial Purchasers for which such arrangements have not been made. 
 (c) If, after giving effect to any arrangements
for the purchase of the Securities of a defaulting Initial Purchaser or Initial Purchasers by the non-defaulting Initial Purchasers and the Company as provided in paragraph (a) above, the aggregate principal amount of such Securities that
remains unpurchased exceeds one-eleventh of the aggregate principal amount of all the Securities, or if the Company shall not exercise the right described in paragraph (b) above, then this Agreement shall terminate. Any termination of this
Agreement pursuant to this Section 9 shall be without liability on the part of the non-defaulting Initial Purchasers or the Company, except that the Company will continue to be liable for the payment of expenses as set forth in Section 10
hereof and except that the provisions of Section 7 hereof shall not terminate and shall remain in effect. 
  

 22 

 (d) Nothing contained herein shall relieve a defaulting Initial Purchaser of any liability it may have to
the Company or any non-defaulting Initial Purchaser for damages caused by its default. 
 10. Payment of Expenses. (a) Whether or
not the transactions contemplated by this Agreement are consummated or this Agreement is terminated, the Company agrees to pay or cause to be paid all costs and expenses incident to the performance of their respective obligations hereunder,
including without limitation, (i) the costs incident to the authorization, issuance, sale, preparation and delivery of the Securities and any taxes payable in that connection; (ii) the costs incident to the preparation and printing of the
Preliminary Offering Memorandum, any other Time of Sale Information, any Issuer Written Communication and the Offering Memorandum (including any amendment or supplement thereto) and the distribution thereof; (iii) the costs of reproducing and
distributing each of the Transaction Documents; (iv) the fees and expenses of the Company’s and the Guarantors’ counsel and independent accountants; (v) the fees and expenses incurred in connection with the registration or
qualification and determination of eligibility for investment of the Securities under the laws of such jurisdictions as the Representatives may designate and the preparation, printing and distribution of a Blue Sky Memorandum (including the related
fees and expenses of counsel for the Initial Purchasers); (vi) any fees charged by rating agencies for rating the Securities; (vii) the fees and expenses of the Trustee and any paying agent (including related fees and expenses of any
counsel to such parties); (viii) all expenses and application fees incurred in connection with the application for the inclusion of the Securities on the PORTAL Market and the approval of the Securities for book-entry transfer by DTC; and
(ix) all expenses incurred by the Company in connection with any “road show” presentation to potential investors. 
 (b) If
(i) this Agreement is terminated pursuant to Section 8(ii), (ii) the Company for any reason fails to tender the Securities for delivery to the Initial Purchasers or (iii) the Initial Purchasers decline to purchase the Securities
for any reason permitted under this Agreement, the Company agrees to reimburse the Initial Purchasers for all out-of-pocket costs and expenses (including the fees and expenses of their counsel) reasonably incurred by the Initial Purchasers in
connection with this Agreement and the offering contemplated hereby. It is understood that, except as provided in Section 7 and in this Section 10(b), the Initial Purchasers will pay all of their own costs and expenses, including, without
limitation, the fees of their counsel, transfer taxes on resale of any of the Securities by them and any advertising expenses connected with any offers they may make. 
 11. Persons Entitled to Benefit of Agreement. This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and any controlling persons referred to herein,
and the affiliates, officers and directors of each Initial Purchaser referred to in Section 7 hereof. Nothing in this Agreement is intended or shall be construed to give any other person any legal or equitable right, remedy or claim under or in
respect of this Agreement or any provision contained herein. No purchaser of Securities from any Initial Purchaser shall be deemed to be a successor merely by reason of such purchase. 
 12. Survival. The respective indemnities, rights of contribution, representations, and warranties of the Company and the Initial Purchasers
contained in this Agreement or made by or on behalf of the Company or the Initial Purchasers pursuant to this Agreement or any certificate delivered pursuant hereto shall survive the delivery of and payment for the Securities and shall 

  

 23 

 
remain in full force and effect, regardless of any termination of this Agreement or any investigation made by or on behalf of the Company or the Initial
Purchasers. 
 13. Certain Defined Terms. For purposes of this Agreement, (a) except where otherwise expressly provided, the term
“affiliate” has the meaning set forth in Rule 405 under the Securities Act; (b) the term “business day” means any day other than a day on which banks are permitted or required to be closed in New York City; (c) the term
“Exchange Act” means the Securities Exchange Act of 1934, as amended; (d) the term “subsidiary” has the meaning set forth in Rule 405 under the Securities Act; and (e) the term “written communication” has the
meaning set forth in Rule 405 under the Securities Act. 
 14. Miscellaneous. (a) Authority of J.P. Morgan Securities Inc.
Any action by the Initial Purchasers hereunder may be taken by J.P. Morgan Securities Inc. on behalf of the Initial Purchasers, and any such action taken by J.P. Morgan Securities Inc. shall be binding upon the Initial Purchasers. 
 (b) Notices. All notices and other communications hereunder shall be in writing and shall be deemed to have
been duly given if mailed or transmitted and confirmed by any standard form of telecommunication. Notices to the Initial Purchasers shall be given to the Representatives c/o J.P. Morgan Securities Inc., 270 Park Avenue, New York, New York 10017
(fax: (212)-270-1063); Attention: Jessica Kearns. Notices to the Company shall be given to them at 12010 Sunset Hills Road, 6th Floor, Reston, VA 20190, Attention: Jeffrey Epstein, with a copy to Gibson, Dunn & Crutcher LLP, 200 Park Avenue, New York, NY 10166, Attention Joerg H. Esdorn. 
 (c) Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York. 
 (d) Counterparts. This Agreement may be signed in counterparts (which may include counterparts delivered by any standard form of
telecommunication), each of which shall be an original and all of which together shall constitute one and the same instrument. 
 (e)
Amendments or Waivers. No amendment or waiver of any provision of this Agreement, nor any consent or approval to any departure therefrom, shall in any event be effective unless the same shall be in writing and signed by the parties hereto.

 (f) Headings. The headings herein are included for convenience of reference only and are not intended to be part of, or to affect
the meaning or interpretation of, this Agreement. 
  

 24 

 If the foregoing is in accordance with your understanding, please indicate your acceptance of this
Agreement by signing in the space provided below. 
  

			
	Very truly yours,
	
	TERRESTAR NETWORKS INC.
		
	By	 	/s/ Neil L. Hazard
		 	Title:  Chief Financial Officer

  

			
	Accepted: February 8, 2007
	
	J.P. MORGAN SECURITIES INC.
	
	For itself and on behalf of the several Initial Purchasers listed in Schedule 1 hereto.
		
	By	 	/s/ Jacob Steinberg
		 	Authorized Signatory
		
		 	Jacob Steinberg
		 	Executive Director

  

 25 

 Schedule 1 
  

				
	 Initial Purchasers
	  	Principal Amount
	 J.P. Morgan Securities Inc.
	  	$	200,000,000
	 Lehman Brothers Inc.
	  	 	150,000,000
	 UBS Securities LLC
	  	 	150,000,000
		  	 	 
	 Total
	  	$	500,000,000

 Schedule 2 
 Guarantors 
 TerreStar Networks Holdings (Canada) Inc. 
 TerreStar Networks (Canada) Inc. 

 Schedule 3 
 List of Security Documents 
 The Security Agreement, to be dated on or about February 14, 2007, between the
Company and U.S. Bank National Association, as Collateral Agent. 
 The Trademark Security Agreement to be dated on or about February 14, 2007, between
the Company and U.S. Bank National Association, as Collateral Agent. 
 The Canadian Security Agreement to be dated on or about February 14, 2007, among
the Guarantors and U.S. Bank National Association, as Collateral Agent. 

 ANNEX A 
 Additional Time of Sale Information 
 Term sheet containing the terms of the Securities, substantially in the form of
Annex B. 

 ANNEX B 
  

			
	Confidential	 	February 8, 2007

 

 
  

					
	Issuer:	  		  	TerreStar Networks Inc.
			
	Security Description:	  		  	Senior Secured PIK Notes
			
	Distribution:	  		  	144A/RegS for Life
			
	Face:	  		  	$ 500,000,000
			
	Gross Proceeds:	  		  	$ 500,000,000
			
	Coupon:	  		  	15.000%
			
	Coupon Step-Ups:	  		  	Notwithstanding any of the other provisions of the notes or the indenture:
			
		  		  	(i) if by the date which is 60 days after the adoption of the Congressional budget resolution regarding the U.S. federal government’s budget for the government’s 2009 fiscal year
(the “Government Contract Milestone Date”) TerreStar has not certified to the Trustee that TerreStar has entered into a bona fide binding agreement with a department, agency or instrumentality of the U.S. federal government pursuant to
which TerreStar will provide telecommunications services during a multi-year period and will receive compensation therefor, then commencing as of the Government Contract Milestone Date and continuing through the date, if any, on which such
certification is provided to the Trustee, TerreStar will pay additional interest on each note, which additional interest shall equal an increase in the annual interest rate on the notes (after giving effect to any adjustments required pursuant to
clauses (i) and (iii) of this paragraph) by 0.5% per annum;
			
		  		  	(ii) if by October 1, 2008 (the “Commercial Contract Milestone Date”) TerreStar has not certified to the Trustee that TerreStar has entered into a bona fide binding agreement with a
non-governmental entity pursuant to which TerreStar will provide telecommunications services during a multi-year period and will receive compensation therefor, then commencing as of the Commercial Contract Milestone Date and continuing through the
date, if any, on which such certification is provided to the Trustee, TerreStar will pay additional interest on each note, which additional interest shall equal an increase in the annual interest rate on the notes (after giving effect to any
adjustments required pursuant to clauses (ii) and (iii) of this paragraph) by 0.5% per annum;
			
		  		  	(iii) if by December 31, 2008 (the “ATC Milestone Date”), TerreStar has not certified to the Trustee that TerreStar has been authorized by the FCC to provide an Ancillary
Terrestrial Component in combination with the Issuer’s MSS, then commencing as of the ATC Milestone Date and continuing through the date, if any, on which such certification is provided to the Trustee, TerreStar will pay additional interest on
each note, which additional interest shall equal an increase in the annual interest rate on the notes (after giving effect to any adjustments required pursuant to clauses (i) and (ii) of this paragraph) by 0.5% per annum;
			
		  		  	(iv) any certification required by the foregoing shall be in the form of an Officers’ Certificate provided to the Trustee signed by the Issuer’s Chief Executive Officer and Chief
Financial Officer.
			
	Maturity:	  		  	February 15, 2014
			
	Offering Price:	  		  	100.000%
			
	Yield to Maturity:	  		  	15.000%
			
	Spread to Treasury:	  		  	+ 1028
			
	Benchmark:	  		  	UST 4% due 2/15/2014
			
	Ratings:	  		  	NR/NR
			
	Interest Pay Dates (interest will be paid in kind in the form of additional notes until February 15, 2011; cash pay thereafter):	  		  	February 15 and August 15
			
	Beginning:	  		  	August 15, 2007
			
	Clawback:	  		  	Up to 35% at 115%
			
	Until:	  		  	February 15, 2010
			
	Optional redemption:	  		  	The Notes are not redeemable at the Issuer’s option prior to Maturity except as follows:
			
		  		  	At any time prior to Maturity, the Issuer may elect to redeem the Notes at a redemption price equal to the sum of (i) 100% of the principal amount on the redemption date of the Notes redeemed
plus (ii) a “make-whole” premium computed using a discount rate equal to the Treasury Rate plus 50 basis points
			
	Change of control:	  		  	Put @ 101% of principal amount
			
	Incurrence of Indebtedness:	  		  	Including but not limited to the following:
			
		  		  	(i) $1 of additional senior secured or unsecured indebtedness by the Issuer or any Guarantors for each $4 of Net Proceeds received by the Issuer after the issue date resulting from an equity
offering subject to a minimum of Net Proceeds of $150 million.
			
		  		  	(ii) General debt basket of $50 million and no additional credit facilities basket
			
	Trade Date:	  		  	February 8, 2007
			
	Settlement Date:	  	(T+4)	  	February 14, 2007
			
	CUSIP:	  		  	144A: 881452AA4
		  		  	Reg S: U8813GAA9
			
	ISIN:	  		  	USU8813GAA95
			
	Denominations:	  		  	2,000x1,000
			
	Bookrunner:	  		  	JPMorgan
		  		  	Lehman Brothers
		  		  	UBS Investment Bank
			
	Comment:	  		  	The underwriters have informed the Company that they intend to create a syndicate short position in the Notes. The underwriters expect to settle the short position in the market; however, if
the underwriters determine it is prudent to do so, and if they subsequently reach an agreement with the Company to do so, may elect to cover the short position with the purchase of additional Notes from the Company. The final prospectus will be
revised to make clear that the prospectus will apply to both the offering of Notes set forth above and any Notes delivered as part of the short position (to the extent the position is covered by a purchase of additional Notes by the Underwriters
from the Company).

 

 
  

 ANNEX C 
 Restrictions on Offers and Sales Outside the United States 
 In connection with offers and sales of
Securities outside the United States: 
 (a) Each Initial Purchaser acknowledges that the Securities have not been registered under the
Securities Act and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons except pursuant to an exemption from, or in transactions not subject to, the registration requirements of the Securities
Act. 
 (b) Each Initial Purchaser, severally and not jointly, represents, warrants and agrees that: 
 (i) Such Initial Purchaser has offered and sold the Securities, and will offer and sell the Securities, (A) as part of their
distribution at any time and (B) otherwise until 40 days after the later of the commencement of the offering of the Securities and the Closing Date, only in accordance with Regulation S under the Securities Act (“Regulation S”) or
Rule 144A or any other available exemption from registration under the Securities Act. 
 (ii) None of such Initial Purchaser
or any of its affiliates or any other person acting on its or their behalf has engaged or will engage in any directed selling efforts with respect to the Securities, and all such persons have complied and will comply with the offering restrictions
requirement of Regulation S. 
 (iii) At or prior to the confirmation of sale of any Securities sold in reliance on Regulation
S, such Initial Purchaser will have sent to each distributor, dealer or other person receiving a selling concession, fee or other remuneration that purchase Securities from it during the distribution compliance period a confirmation or notice to
substantially the following effect: 
 “The Securities covered hereby have not been registered under the U.S. Securities Act of 1933, as
amended (the “Securities Act”), and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of their distribution at any time or (ii) otherwise until 40 days after the
later of the commencement of the offering of the Securities and the date of original issuance of the Securities, except in accordance with Regulation S or Rule 144A or any other available exemption from registration under the Securities Act. Terms
used above have the meanings given to them by Regulation S.” 
 (iv) Such Initial Purchaser has not and will not enter
into any contractual arrangement with any distributor with respect to the distribution of the Securities, except with its affiliates or with the prior written consent of the Company. 
 Terms used in paragraph (a) and this paragraph (b) and not otherwise defined in this Agreement have the meanings given to them by Regulation S. 

 (c) Each Initial Purchaser, severally and not jointly, represents, warrants and agrees that: 

(i) it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or
inducement to engage in investment activity (within the meaning of Section 21 of the United Kingdom Financial Services and Markets Act 2000 (the “FSMA”)) received by it in connection with the issue or sale of any Securities in
circumstances in which Section 21(1) of the FSMA does not apply to the Company or the Guarantors; 
 (ii) it has complied
and will comply with all applicable provisions of the FSMA with respect to anything done by it in relation to the Securities in, from or otherwise involving the United Kingdom; and 
 (iii) it has offered and sold the Securities, and will offer and sell the Securities, as part of their distribution in Canada at any time,
only in accordance with the terms of the Canadian Offering Memorandum. 
 (d) Each Initial Purchaser, severally and not jointly, represents,
warrants and agrees, in relation to each Member State of the European Economic Area which has implemented the Prospectus Directive (each, a “Relevant Member State”), that with effect from and including the date on which the Prospectus
Directive is implemented in that Relevant Member State (the “Relevant Implementation Date”) it has not made and will not make an offer of notes to the public in that Relevant Member State prior to the publication of a prospectus in
relation to the notes which has been approved by the competent authority in that Relevant Member State or, where appropriate, approved in another Relevant Member State and notified to the competent authority in that Relevant Member State, all in
accordance with the Prospectus Directive, except that it may, with effect from and including the Relevant Implementation Date, make an offer of notes to the public in that Relevant Member State at any time: 
 (i) to legal entities which are authorized or regulated to operate in the financial markets or, if not so authorized or regulated, whose
corporate purpose is solely to invest in securities; 
 (ii) to any legal entity which has two or more of (1) an average
of at least 250 employees during the last financial year; (2) a total balance sheet of more than €43,000,000 and (3) an annual net turnover of more than €50,000,000, as shown in its last annual accounts; or 
 (iii) in any other circumstances which do not require the publication by the Company of a prospectus pursuant to Article 3 of the
Prospectus Directive. 
 For the purposes of this provision, the expression an “offer of notes to the public” in relation to any notes in any
Relevant Member State means the communication in any form and by any means of sufficient information on the terms of the offer and the notes to be offered so as to enable an investor to decide to purchase or subscribe the notes, as the same may be
varied in that Member State by any measure implementing the Prospectus Directive in that Member State and the 

  

 C-2 

 
expression Prospectus Directive means Directive 2003/71/EC and includes any relevant implementing measure in each Relevant Member State. 
 (d) Each Initial Purchaser acknowledges that no action has been or will be taken by the Company that would permit a public offering of the Securities, or
possession or distribution of any of the Time of Sale Information, the Offering Memorandum, any Issuer Written Communication or any other offering or publicity material relating to the Securities, in any country or jurisdiction where action for that
purpose is required. 
  

 C-3Employment Agreement

 Exhibit 10.1 
 

 
  

 January 16, 2007 
 Mr. Stewart A. Halpern 
 448 West 37th Street, Apt. 9E 
 New York, NY 10018 
 Re: Employment Terms 
 Dear Stewart: 
 I am pleased to offer you employment in the position of Chief Financial Officer, of Mad Catz Interactive,
Inc. and Mad Catz, Inc. (collectively the “Company”). We recognize that you fill a critical executive position and want to compensate you accordingly and provide financial security to you. This letter sets forth the terms of the Employment
Agreement (the Agreement”) that the Company is offering to you: 
 1. EMPLOYMENT BY THE COMPANY. 
 1.1. Title and Responsibilities. Subject to the terms set forth herein, the Company agrees to employ you in the position of Chief Financial Officer
and you hereby accept such employment effective as of the date listed above (“Effective Date”). You agree that you will devote your best efforts and substantially all of your business time and attention (except for vacation periods as set
forth herein and reasonable periods of illness or other incapacity permitted by the Company’s general employment policies) to the business of the Company. 
 1.2 Executive Position. You will serve in an executive capacity and shall perform such duties as are reasonably assigned from time to time by your supervisor. You will report directly to the Chief Executive
Officer. 
 1.3 Company Employment Policies. Your employment relationship with the Company shall also be governed by this Agreement,
your offer letter and the Company’s policies and procedures, including those relating to protection of confidential information and assignment of inventions, ideas and intellectual property, except that when the terms of this Agreement differ
from or are in conflict with the Company’s employment policies or procedures or your offer letter, this Agreement shall control. 
 1.4 Employment Period. In recognition of your important role with the Company, we have agreed that the duration of your employment, under this Agreement, is three years from the Effective Date (the “Contract Employment
Period”) or to the date your employment is terminated in accordance with Section 6 of this Agreement. Following the initial three-year term, unless this Agreement is terminated during the Contract Employment Period, this Agreement and the
Contract Employment Period shall be automatically renewed for successive one-year periods. Notwithstanding the foregoing, you understand that the employment 
  
 

 
  

 

 

 

 
  

 
relationship is “at will” in accordance with California law, and that either side may terminate the employment relationship at any time with or
without cause, and with or without notice. However, if the Company terminates your employment during the Contract Employment Period for any reason other than for cause or reasons enumerated under Section 6.4, or if you resign for Good Reason
during the Contract Employment Period, under Section 6.5, then you shall be entitled to a severance payment of one full year of regular base pay, in addition to any other severance benefits that may be negotiated between you and the Company.
The Company’s payment of any severance compensation is conditioned upon execution of the Release Agreement attached hereto as Exhibit B. 
 2. COMPENSATION AND BENEFITS. 
 2.1 Base Salary. For services rendered hereunder, you shall receive an annualized base
salary of $ 225,000.00, less standard withholdings and deductions, payable in accordance with the Company’s standard payroll procedures. You will be considered for annual changes in base salary in accordance with Company policy and subject to
review and approval by the Board of Directors (“Board.”) 
 2.2 Relocation. In addition, on your start date, Mad Catz will
provide you with a relocation allowance of $25,000.00 less federal, state, local and FICA taxes and other applicable withholdings. The relocation allowance amount is intended for you to use at your discretion for any relocation expenses that you may
incur. Should you give notice of your intent to terminate your employment with Mad Catz or be terminated with cause prior to 12 months from your start date, you will be obligated to refund a pro-rata amount of these expenses to Mad Catz upon
termination. This amount will be deducted from your final paycheck and/or any outstanding PTO balance you may have accrued, but not used. Your acceptance of this offer indicates your acceptance of this provision and your permission to perform this
deduction. 
 2.3 Bonuses. For FY07, you will be paid a bonus of 10% of your annual base salary ($22,500.00) subject to successful
completion of your Introductory Period. For FY08 and beyond, you will be eligible to participate in the bonus plan for the Company’s senior executives. 
 2.4 Stock Options. Upon joining the company you will be granted 220,000 options priced as of the close of the market on the day immediately prior to your first day of employment. Should you not successfully
complete your Introductory Period, 100,000 of these options shall be forfeited. Beyond this initial grant, you shall be eligible to participate in the stock option plan for the company’s senior executives which is managed and controlled by the
Board. The number of stock options granted shall be determined by the compensation committee in its discretion. The terms and conditions of the Plan for vesting and exercising shares shall continue to govern. Both the Plan and the written Option
Agreement, pursuant to the Plan, are incorporated herein by reference. In the event you are terminated without cause, all unvested options shall immediately vest and you will have ninety (90) days to exercise such options before they expire. In
the event the terms of the Plan and this Agreement conflict, the provisions of this Agreement shall control. 
 2.5 Standard Company
Benefits for Executives. You shall be entitled to all rights and benefits for which you are eligible under the terms and conditions of the standard 
  
 

 
  

 

 

 

 
  

 
Company benefits and compensation plans which may be in effect from time to time and provided by the Company to its executive level employees generally. You
shall receive 4 weeks of Paid Time Off (“PTO”) per year and such PTO shall be governed by the Company’s policies on PTO, in effect from time to time. 
 2.6 Business Expense Reimbursement. The Company shall reimburse you for all reasonable travel, entertainment or other out-of-pocket expenses incurred by you in furtherance of or in connection with the
performance of your duties hereunder, in accordance with the Company’s written expense reimbursement policies in effect from time to time. 
 2.7 Indemnification. You shall receive indemnification as a corporate officer of the Company to the maximum extent extended to the other executive officers of the Company. If so requested by the Board, you will be required to enter
into the Company’s standard form of Indemnification Agreement, pursuant to which the Company agrees to advance any expenses for which indemnification is available to the extent allowed by applicable law. 
 3. PROPRIETARY INFORMATION OBLIGATIONS. 
 3.1 Proprietary Information Agreement. You agree to execute and abide by the Employee Proprietary Information and Inventions Agreement, attached hereto as Exhibit A. 
 3.2 Remedies. Your duties under the Employee Proprietary Information and Inventions Agreement shall survive termination of your employment with
the Company. You acknowledge that a remedy at law for any breach or threatened breach by you of the provisions of the Employee Proprietary Information and Inventions Agreement would be inadequate and you therefore agree that the Company shall be
entitled to injunctive relief in case of any such breach or threatened breach. 
 4. OUTSIDE ACTIVITIES. 
 4.1 Activities. Except with the prior written consent of the Board, you will not during your employment with the Company undertake or engage in
any other employment, occupation or business enterprise, other than ones in which you are a passive investor. You may accept speaking or presentation engagements in exchange for honoraria and may engage in civic and not-for-profit activities so long
as such activities do not materially interfere with the performance of your duties hereunder. 
 4.2 Investments and Interests. Except
as permitted by Section 4.3, you agree not to acquire, assume or participate in, directly or indirectly, any position, investment or interest known by you to be adverse or antagonistic to the Company, its business or prospects, financial or
otherwise. 
 4.3 Non-Competition. During your employment by the Company, and for one year from termination, you will not directly or
indirectly, whether as an officer, director, stockholder, partner, proprietor, associate, representative, consultant, or in any capacity whatsoever engage in, become financially interested in, be employed by or have any business connection with any
other person, corporation, firm, partnership or other entity whatsoever known by you to compete directly with the Company, anywhere in the world, in any line of business engaged in (or in which the Company plans to be engaged and you are aware of
such plans as of the date your employment with the Company terminates) by the Company; provided, 
  
 

 
  

 

 

 

 
  

 
however, that anything above to the contrary notwithstanding, you may own, as a passive investor, securities of any competitor corporation, so long as your
direct holdings in any one such corporation shall not in the aggregate constitute more than one percent (1%) of the voting stock of such corporation. 
 5. OTHER AGREEMENTS. 
 You represent and warrant that your employment by the Company will not conflict
with and will not be constrained by any prior agreement or relationship with any third party. You represent and warrant that you will not disclose to the Company or use on behalf of the Company any confidential information governed by any agreement
with any third party except in accordance with an agreement between the Company and any such third party. During your employment by the Company, you may use, in the performance of your duties, all information generally known and used by persons with
training and experience comparable to your own and all information which is common knowledge in the industry or otherwise legally in the public domain. 
 6. TERMINATION OF EMPLOYMENT. 
 6.1 At-Will Employment. Your relationship with the Company is
at-will. Both you and the Company shall have the right to terminate your employment with the Company at any time with or without Cause and with or without notice, provided that you may be removed from any position you hold as a member of the
Company’s Board only in the manner provided by the Bylaws of the Company and applicable law. 
 6.2 Termination by Company for
Cause. If the Company terminates your employment at any time for Cause (as defined below), your salary shall cease on the date of termination and you shall not be entitled to severance pay, pay in lieu of notice or any other such compensation
other than payment of accrued salary and vacation and such other benefits as expressly required in such event by applicable law or the terms of applicable benefit plans. All stock options and any unvested stock awards issued to you shall be
controlled by the terms of the Plan. 
 (a) Definition. For purposes of this Agreement, “Cause” shall mean the occurrence of
one or more of the following: (i) your unauthorized use or disclosure of confidential information or trade secrets of the Company, which use or disclosure causes material harm to the Company; (ii) your conviction of, or your plea of
“guilty” or “no contest” to, a felony under the laws of the United States, or any state thereunder; (iii) gross negligence in the performance of your duties to the Company, willful or habitual neglect of your duties or
violation of Company policy, which is not cured by you within fourteen (14) days of receiving written notice of such breach; (iv) a willful act by you which constitutes gross misconduct and which causes material injury to the Company,
which is not cured by you within fourteen (14) days of receiving written notice of such breach; or, (v) your material breach of the Employee Proprietary Information and Inventions Agreement attached hereto. Your physical or mental
disability or death shall not constitute Cause hereunder. For purposes hereof, “gross negligence” in the performance of your duties to the Company shall only include such gross negligence which has resulted or is likely to result in
substantial and material damage to the Company. 
 6.3 Your Voluntary Resignation. You may voluntarily terminate your. 
  
 

 
  

 

 

 

 
  

 
employment with the Company at any time with or without notice, and with or without Good Reason (as defined in Section 6.6 below). In the event that you
voluntarily terminate your employment other than for Good Reason, you will not be entitled to severance pay, pay in lieu of notice or any other such compensation other than payment of accrued salary and vacation and such other benefits as expressly
required in such event by applicable law or the terms of applicable benefit plans. All stock options and any unvested stock awards issued to you shall be controlled by the terms of the Plan. 
 6.4 Termination for Death or Disability. Your employment with the Company will be terminated in the event of your death, or any illness,
disability or other incapacity that renders you physically or mentally unable regularly to perform your duties hereunder for a period in excess of one hundred twenty (120) consecutive days or more than one hundred eighty (180) days in any
consecutive twelve (12) month period. The determination regarding whether you are physically or mentally unable regularly to perform your duties shall be made by the Board. Your inability to be physically present on the Company’s premises
shall not constitute a presumption that you are unable to perform such duties. In the event that your employment with the Company is terminated for death or disability as described in this Section 6.4, you or your heirs, successors, and assigns
shall not receive any compensation or benefits other than payment of accrued salary and vacation and such other benefits as expressly required in such event by applicable law or the terms of applicable benefit plans. All stock options and any
unvested stock awards issued to you shall be controlled by the terms of the Plan. 
 6.5 Your Resignation for Good Reason. You may
resign your employment for Good Reason so long as you tender your resignation to the Company within sixty (60) days after the occurrence of the event which forms the basis for your termination for Good Reason. 
 For purposes of this Agreement, “Good Reason” shall mean any one of the following events which occurs on or after the commencement of your
employment without your consent: (i) any reduction of your then existing annual base salary by more than ten percent (10%) unless comparable reductions are made for all other executive officers of the Company; (ii) any material
reduction in the package of benefits and incentives, taken as a whole, provided to you (except that employee contributions may be raised to the extent of any cost increases imposed by third parties) or any action by the Company which would
materially and adversely affect your participation or reduce your benefits under any such plans, except to the extent that such benefits and incentives of all other executive officers of the Company are similarly reduced; (iii) any material
diminution of your duties, responsibilities, authority, reporting structure, excluding for this purpose an isolated or inadvertent action not taken in bad faith which is remedied by the Company immediately after notice thereof is given by you;
(iv) any request that you relocate to a work site that would increase your one-way commute distance by more than fifty (50) miles from your then principal residence, unless you accept such relocation opportunity; (v) following a
Change in Control, as defined in Section 7.1; or (v) any material breach by the Company of its obligations under this Agreement that is not remedied by Company within thirty (30) days of written notice of such breach from you.

 7. CHANGE IN CONTROL. 
 7.1 Change In Control Definition. For purposes of this Agreement, Change in Control shall mean any of the following: (i) any consolidation or merger of the Company or Mad Catz Interactive with or into any other corporation or
other entity or person, or any other 
  
 

 
  

 

 

 

 
  

 
corporate reorganization in which the stockholders of the Company or Mad Catz Interactive immediately prior to such consolidation, merger or reorganization
by reason of the securities in the Company or Mad Catz Interactive owned by them prior to same, own less than fifty percent (50%) of the Company’s or Mad Catz Interactive voting power immediately after such consolidation, merger or
reorganization, or any transaction or series of related transactions in which in excess of fifty percent (50%) of the Company’s or Mad Catz Interactive’s voting power is transferred; or (ii) a sale, lease or other disposition of
all or substantially all of the assets of the Company or the assets of Mad Catz Interactive. 
 8. RELEASE. Upon your termination of
employment, you shall enter into and execute a release substantially in the form attached hereto as Exhibit B (the “Release”), as a condition of your receipt of any severance benefits (including, without limitation, any cash severance
payment or accelerated vesting of shares) provided under this Agreement. Additionally, unless the Release is executed by you and becomes fully effective under the terms set forth in the Release, any acceleration of your stock awards as provided
under this Agreement shall not apply and your stock awards in such event may be exercised following the date of your termination only to the extent provided under the Plan. 
 9. DISPUTE RESOLUTION. If a dispute arises between the parties, the parties agree to use the following dispute resolution procedure: 

9.1 Meet and Confer. A meeting shall be held promptly between the parties, attended by individuals with decision-making authority regarding the
dispute, to attempt, in good faith, to negotiate a resolution of the dispute. 
 9.2 Mediation. If within 15 days after such meeting,
the parties have not succeeded in negotiating a resolution of the dispute, they agree to submit the dispute to mediation in San Diego, California, under the auspices of, and in accordance with the rules of, JAMS/Endispute (“JAMS”). The
parties will jointly appoint a mutually acceptable mediator, seeking assistance in such regard from JAMS if they are unable to agree upon such appointment. The cost of the mediator and any administrative fee shall be shared equally by the parties.
The parties agree to participate in good faith in the mediation and negotiations related thereto for a period of not less than 15 days. If the parties are not successful in resolving the dispute through mediation, then the parties agree that the
dispute shall be decided by arbitration as provided below. 
 9.3 Arbitration. If the parties have been unable to resolve their dispute
through mediation, as provided above, any remaining controversy or claim arising out of, or relating to, the employment relationship or subject matter of this Agreement, or the making, performance or interpretation hereof, shall be decided by
binding arbitration in San Diego, California. The arbitration shall be conducted under the auspices of, and in accordance with the rules of JAMS, by a neutral arbitrator who is mutually agreeable to the parties hereto, or appointed by JAMS if the
parties cannot agree. There will be only one arbitrator appointed. The cost of the arbitrator and any administrative fees shall be shared equally by the parties. The arbitrator may award damages as well as equitable and declaratory relief. The
arbitration award shall be final and conclusive upon the parties and a judgment or decree upon the award may be entered in any court having jurisdiction over the subject matter of the controversy. 
 9.4 Provisional Remedies and Injunctive Relief. Notwithstanding the 
  
 

 
  

 

 

 

 
  

 
agreement to submit disputes to negotiation, mediation and arbitration, as provided above, either party may seek from a court of competent jurisdiction any
provisional or interim relief that is necessary to protect the rights or property of that party. Such provisional or interim relief may include, without limitation, restraining orders and other injunctive relief necessary to preserve the status quo
based on claims for unfair competition and/or misappropriation of trade secrets and/or solicitation, as referenced in Exhibit A attached hereto. 
 Notice: by initialing in the space below, you are agreeing to have any dispute arising out of the matters included in the “Arbitration” provision decided by neutral arbitration as provided by law and you are giving up any
rights you might possess to have the dispute litigated in a court or jury trial. By initialing in the space below, you are giving up your judicial rights to discovery and appeal. If you refuse to submit to arbitration after agreeing to this
provision, you may be compelled to arbitrate under the authority of the California Code of Civil Procedure. Your agreement to this arbitration provision is voluntary. 
 WE HAVE READ AND UNDERSTAND THE FOREGOING AND AGREE TO SUBMIT DISPUTES ARISING OUT OF THE MATTERS INCLUDED IN THE “ARBITRATION” PROVISION, WHICH INCLUDE ANY CLAIMS FOR WRONGFUL TERMINATION, DISCRIMINATION
OR HARASSMENT, TO NEUTRAL BINDING ARBITRATION. BY PLACING THEIR INITIALS HERE, THE PARTIES AGREE TO BINDING ARBITRATION IN ACCORDANCE WITH THE FOREGOING PROVISION. 
  

							
	Company:	 	 /s/ DR
	 	Employee:	  	 /s/ SH

 10. GENERAL PROVISIONS. 
 10.1 Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be
invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or any other jurisdiction, but such invalid, illegal or
unenforceable provision will be reformed, construed and enforced in such jurisdiction so as to render it valid, legal, and enforceable consistent with the intent of the parties insofar as possible. 
 10.2 Entire Agreement. This Agreement, together with the Employee Proprietary Information and Inventions Agreement, and any stock option or stock
award agreements which may be entered into now or in the future between you and the Company, constitutes the entire agreement between you and the Company and it supersedes any prior agreement, promise, representation, or statement written or
otherwise between you and the Company with regard to this subject matter. It is entered into without reliance on any promise, representation, statement or agreement other than those expressly contained or incorporated herein, and it cannot be
modified or amended except in a writing signed by you and a duly authorized officer of the Company. 
 10.3 Successors and Assigns.
This Agreement is intended to bind and inure 
  
 

 
  

 

 

 

 
  

 
to the benefit of and be enforceable by you, the Company and you and their respective successors, assigns, heirs, executors and administrators, except that
you may not assign any of your duties hereunder and you may not assign any of your rights hereunder without the written consent of the Company, which shall not be withheld unreasonably. 
 10.4 Governing Law. All questions concerning the performance, construction, validity and interpretation of this Agreement shall be governed by the
law of the State of California, without regard to its conflicts of law doctrine, as applied to contracts made and to be performed entirely within California. 
 10.5 Notices. Any notice required or permitted under this Agreement shall be given in writing and shall be deemed to have been effectively made or given if personally delivered, or if sent by facsimile, or
mailed to the other party at its address set forth below, or at such other address as such party may designate by written notice to the other party hereto. Any effective notice hereunder shall be deemed given on the date personally delivered or on
the date sent by facsimile or two business days after deposited in the United States mail (sent by Certified Mail, Return Receipt Requested), as the case may be, at the following address. 
  

			
	If to Company:	 	If to Employee:
	Board of Directors	 	Stewart Halpern
	Mad Catz, Inc.	 	448 West 37th Street, Apt. 9E
	7480 Mission Valley Road	 	New York, NY 10018
	Suite 101	 	
	San Diego, California 92108	 	

 With a copy to: 
 Mad Catz’ legal department 7480 Mission Valley Road, Suite 101, San Diego, California 92108. 
  
 

 
  

 

 

 

 
  

 To indicate your acceptance of the Company’s offer of employment on these terms, please sign and date this
Agreement in the space provided below and return it to me. 
 Sincerely, 
  

	
	
	 /s/ DARREN RICHARDSON

	Darren Richardson
	For the Mad Catz Interactive and Company
	President and CEO

  

	
	ACCEPTED AND AGREED:
	
	 /s/ STEWART HALPERN

	Stewart Halpern
	Signature

  
 

 
  

 

 

 

 
  

 EXHIBIT A 
 EMPLOYEE PROPRIETARY INFORMATION AND INVENTIONS AGREEMENT 
 In consideration this employment
agreement and other good and valuable consideration, the receipt of which is hereby acknowledged by Mad Catz Inc., and Stewart Halpern (collectively, the “Parties), the Parties hereby agree that the Agreement entitled AGREEMENT RELATING TO
EMPLOYEE CONFIDENTIALITY, NON-DISCLOSURE AND ASSIGNMENT OF INVENTIONS, PATENTS, IDEAS AND DISCOVERIES and attached hereto as Exhibit A is hereby made part of this employment agreement. 
  
 

 
  

 

 

 

 
  

 EXHIBIT B 
 RELEASE AGREEMENT 
 I understand that my position with Mad Catz Interactive, Inc. and Mad Catz, Inc. (the
“Company”) terminated effective                     ,
                    (the “Separation Date”). The Company has agreed that if I choose to sign this Release, the Company will pay me
certain severance benefits pursuant to the terms of the Employment Agreement (the “Agreement”) between myself and the Company, and any agreements incorporated therein by reference. I understand that I am not entitled to such benefits
unless I sign this Release and it becomes fully effective. I understand that, regardless of whether I sign this Release, the Company will pay me all of my accrued salary and vacation through the Separation Date, to which I am entitled by law.

 In consideration for the severance benefits I am receiving under the Agreement, I hereby release the Company and its officers, directors, agents,
attorneys, employees, shareholders, parents, subsidiaries, and affiliates from any and all claims, liabilities, demands, causes of action, attorneys’ fees, damages or obligations of every kind and nature, whether they are now known or unknown,
arising at any time prior to the date I sign this Release and which arise out of my employment or my termination of employment with the Company, including, without limitation, any such claims based on federal and state statutory and common law,
breach of contract, tort, wrongful termination, discrimination, wages or benefits, or claims for any form of compensation for services. Notwithstanding the foregoing, I am not releasing any right of indemnification I may have for any liabilities
arising from my actions within the course and scope of my employment with the Company. Notwithstanding anything herein to the contrary, the release described herein does not apply to any rights or obligations arising under this Release Agreement.

 In releasing claims unknown to me at present, I am waiving all rights and benefits under Section 1542 of the California Civil Code, and any law or
legal principle of similar effect in any jurisdiction: 
 “A general release does not extend to claims which the creditor does not know or suspect to
exist in your favor at the time of executing the release, which if known by him must have materially affected your settlement with the debtor.” 
 If I am forty (40) years of age or older as of the Separation Date, I acknowledge that I am knowingly and voluntarily waiving and releasing any rights I may have under the federal Age Discrimination in Employment Act of 1967, as
amended (“ADEA”). I also acknowledge that the consideration given for the waiver in the above paragraph is in addition to anything of value to which I was already entitled. I have been advised by this writing, as required by the ADEA that:
(a) my waiver and release do not apply to any claims that may arise after my signing of this Release; (b) I should consult with an attorney prior to executing this Release; (c) I have twenty-one (21) days within which to consider
this Release (although I may choose to voluntarily execute this Release earlier); (d) I have seven (7) days following the execution of this release to revoke the Release; and (e) this Release will not be effective until the eighth day
after this Release has been signed both by me and by the Company (“Effective Date”). 
 Agreed: 
  
 

 
  

 

 

 

 
  

			
	[COMPANY]	  	[EMPLOYEE]
		
	By:                    	  	By:                    
		
	[Name]	  	
		
	[Title]	  	
		  	
		
	Date:                    	  	 Date:

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