Registration No.333-
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
---------------------
FORM S-8
REGISTRATION STATEMENT
UNDER
THE SECURITIES ACT OF 1933
---------------------
AMERICAN MOBILE SATELLITE CORPORATION
(Exact name of issuer as specified in its charter)
Delaware
(State or other jurisdiction of
incorporation or organization)
93-0976127
(I.R.S. Employer
Identification No.)
10802 Parkridge Boulevard
Reston, Virginia 20191-5416
703-758-6000
(Address of Principal Executive Offices
including Zip Code, and telephone number,
including Area Code of registrant's principal executive offices)
American Mobile Satellite Corporation 1989 Stock Option Plan
(Full title of the Plan)
Randy S. Segal, Esq.
General Counsel, Vice President and Secretary
American Mobile Satellite Corporation
10802 Parkridge Boulevard
Reston, Virginia 20191-5416
703-758-6000
(Name, address, including Zip Code, and
telephone number, including Area Code, of agent for
service)
Approximate date of commencement of proposed
sale of the securities: From time to time
after the effective date of this
Registration Statement.
<PAGE>
CALCULATION OF REGISTRATION FEE
================================================================================
Proposed
Maximum Proposed
Title of Offering Maximum
securities (1) Amount Price Aggregate Amount of
to be to be Per Offering registration
registered registered Share Price fee
- --------------------------------------------------------------------------------
Common
Stock
par value
$.01 per 1,000,000 (2) $11,500,000 $3,432.84
share..... shares
================================================================================
(1) Represents the maximum number of additional shares which may be
distributed pursuant to this Registration Statement, absent operation
of recapitalization provisions of the Plan. Such additional
undeterminable number of shares as may be required by reason of such
recapitalization provisions is hereby also registered.
(2) Not applicable.
-2-
<PAGE>
The contents of Registration Statements No. 33-72852, No. 33-34250 and No.
333-30099 are hereby incorporated by reference.
-3-
<PAGE>
Item 8. Exhibits
Exhibits Description of Exhibit
- -------- ----------------------
4.6 -- 1989 Employee Stock Option Plan as amended May 20, 1998.
(Filed herewith.)
5 -- Opinion of Randy S. Segal, General Counsel of the Company, as
to the validity of the securities being offered.(Filed herewith.)
23(a) -- Consent of Arthur Andersen LLP. (Filed herewith.)
23(b) -- Consent of Randy S. Segal, General Counsel of the Company
(included in Exhibit 5).
24 -- Powers of Attorney (included on signature pages).
-4-
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933, the
Registrant certifies that it has reasonable grounds to believe that it meets all
of the requirements for filing a Form S-8 and has duly caused this Registration
Statement to be signed on its behalf by the undersigned, thereunto duly
authorized, in the County of Fairfax, Commonwealth of Virginia, on May 20, 1998.
AMERICAN MOBILE SATELLITE CORPORATION
By: /s/Gary M. Parsons
------------------
Gary M. Parsons
Chief Executive Officer
POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS, that each person whose signature
appears below hereby constitutes and appoints Gary M. Parsons, Walter V.
Purnell, Jr. and Randy S. Segal, his true and lawful attorney-in-fact and agent,
with full power of substitution and resubstitution, for him and in his name,
place and stead, in any and all capacities, to sign any and all amendments to
this registration statement, and to file the same , with exhibits thereto, and
other documents in connection therewith with the Securities and Exchange
Commission, granting unto said attorney-in-fact and agent full power and
authority to do and perform each and every act and thing requisite and necessary
to be done, as fully to all and intents and purposes as he might or could do in
person, hereby ratifying and confirming all that said attorney-in-fact and agent
or either of them, or their or his substitute or substitutes, may lawfully do or
cause to be done by virtue hereof.
- 5 -
<PAGE>
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in the
capacities and on the dates indicated:
Name Title Date
---- ----- ----
/s/Gary M. Parsons Chairman of the Board May 20, 1998
- ----------------- of Directors (Principal
Gary M. Parsons Executive Officer)
/s/Stephen D. Peck Chief Financial Officer May 20, 1998
- ------------------ and President (Principal
Stephen D. Peck Financial and Accounting
Officer)
/s/Douglas I. Brandon Director May 20, 1998
- ---------------------
Douglas I. Brandon
/s/Ho Siaw Hong Director May 20, 1998
- --------------------
Ho Siaw Hong
Director May 20, 1998
- ------------------
Pradeep P. Kaul
/s/Billy J. Parrott Director May 20, 1998
- -------------------
Billy J. Parrott
Director May 20, 1998
- ---------------------
Andrew A. Quartner
/s/Jack A. Shaw Director May 20, 1998
- ---------------
Jack A. Shaw
/s/Roderick M. Sherwood, III Director May 20, 1998
- ----------------------------
Roderick M. Sherwood, III
/s/Michael T. Smith Director May 20, 1998
- -------------------
Michael T. Smith
Director May 20, 1998
- -----------------
Yap Chee Keong
- 6 -
<PAGE>
INDEX TO EXHIBITS
Exhibits Description of Exhibit
4.6 -- 1989 Employee Stock Option Plan as amended May 20,
1998. (Filed herewith.)
5 -- Opinion of Randy S. Segal, General Counsel of the
Company, as to the validity of the securities being
offered. (Filed herewith.)
23(a) -- Consent of Arthur Andersen & Co. (Filed herewith.)
23(b) -- Consent of Randy S. Segal, General Counsel of the
Company (included in Exhibit 5).
24 -- Powers of Attorney (included on signature pages).
- 7 -
<PAGE>
AMERICAN MOBILE SATELLITE CORPORATION
1989 EMPLOYEE STOCK OPTION PLAN
As Amended Effective May 20, 1998
1. Definitions
In this Plan, except where the context otherwise indicates, the following
definitions apply:
A. "Agreement" means a written agreement implementing a grant of an
Option or an award f Bonus Stock.
B. "Board" means the Board of Directors of the Corporation.
C. "Bonus Stock" means Shares awarded under the Plan in accordance
with the terms of Article 9.
D. "Code" means the Internal Revenue Code of 1986, as amended.
E. "Committee" means the committee of the Board meeting the
standards of Rule 16b- 3(c)(2)(i) under the Exchange Act, or any
similar successor rule, appointed by the Board to administer the
Plan. Unless otherwise determined by the Board, the Compensation
Committee of the Board shall be the Committee.
F. "Common Stock" means the common stock, par value $.01 per share,
of the Corporation.
G. "Corporation" means AMERICAN MOBILE SATELLITE CORPORATION.
H. "Date of Exercise" means the date on which the Corporation
receives notice of the exercise of an Option in accordance with
the terms of Article 7.
I. "Date of Grant" means the date as of which an Option is granted
or an award of Bonus Stock is authorized by the action of the
Committee or such later date as may be specified in the
authorization.
J. "Employee" means any person determined by the Committee to be an
employee of the Corporation or of a Subsidiary.
K. "Exchange Act" means the Securities Exchange Act of 1934, as
amended.
L. "Fair Market Value" of a Share means the amount equal to the
average of the high and low prices of a Share on the applicable
date as reported by the consolidated tape of the National
Association of Securities Dealers Automated Quotation (or on such
other recognized quotation system on which the trading prices of
the Common Stock are quoted on the applicable date), or, if no
Share transactions are reported on such tape (or such other
system) on the applicable date, the high and low prices of a
Share on the immediately preceding date on which Share
transactions were so reported, or as determined pursuant to a
reasonable method adopted by the Committee in good faith for such
purpose.
- 1 -
<PAGE>
M. "Grantee" means an Employee to whom bonus Stock has been awarded.
N. "Insider" means an Optionee or Grantee who is subject to the
reporting requirements under Section 16(a) of the Exchange Act.
O. "Option" means an option to purchase Shares granted under the
Plan in accordance with the terms of Article 6.
P. "Option Period" means the period during which an Option may be
exercised.
Q. "Option Price" means the price per Share at which an Option may
be exercised. The Option Price shall not be less than the greater
of the Fair Market Value per Share determined as of the Date of
Grant or the par value of the Common Stock.
R. "Optionee" means an Employee to whom an Option has been granted.
S. "Plan" means this AMERICAN MOBILE SATELLITE CORPORATION 1989
Stock Option Plan.
T. "Reload Option" means a new Option granted to an Optionee upon
the surrender of Shares to pay the Option Price of a previously
granted Option. The Option Price for any Reload Option shall not
be less than the greater of the Fair Market Value of a Share on
the date that Shares are surrendered in payment of the Option
Price in accordance with Section 3.A(d) or the par value of the
Common Stock. Other terms of the Reload Option shall be the same
as the terms contained in the Optionee's Agreement relating to
the Option being exercised.
U. "Share" means a share of Common Stock.
V. "Subsidiary" means a corporation at least 50% of the total
combined voting power of all classes of stock of which is owned
by the Corporation either directly or through one or more
Subsidiaries.
W. "Withholding Tax Liabilities" means the Corporation's federal,
state and any local income tax and payroll withholding tax
obligations arising in connection with the exercise of an Option
or the award of Bonus Stock under the Plan. Withholding Tax
Liabilities does not include the Corporation's share of any
payroll taxes.
2. Purpose
The Plan is intended to assist in attracting and retaining Employees of
outstanding ability and to promote the identification of their interests with
those of the shareholders of the Corporation.
3. Administration
The Plan shall be administered by the Committee. In addition to any other
powers granted to the Committee, it shall have the following powers, subject to
the express provisions of the Plan:
A. subject to the provisions of this Plan, to determine in its
discretion the Employees to whom Options shall be granted and to
whom Bonus Stock shall be awarded, the number of Shares to be
subject to each Option or Bonus Stock award, and the terms upon
which Options may be acquired and exercised and the terms and
conditions of Bonus Stock awards;
- 2 -
<PAGE>
B. to determine all other terms and provisions of each Agreement,
which need not be identical;
C. without limiting the generality of the foregoing, to provide in
its discretion in an Agreement:
(a) for an agreement by the Optionee or Grantee to render
services to the Corporation upon such terms and conditions as may be specified
in the Agreement, provided that the Committee shall not have the power to commit
the Corporation to employ or otherwise retain any Optionee or Grantee;
(b) for restrictions on the transfer, sale or other disposition
of Shares issued to the Optionee upon the exercise of an Option or for other
restrictions permitted by Article 9 with respect to Bonus Stock;
(c) for an agreement by the Optionee or Grantee to resell to the
Corporation, under specified conditions, Shares issued upon the exercise of an
Option or awarded as Bonus Stock;
(d) for the right of the Optionee to surrender to the Corporation
an Option (or a portion thereof) that has become exercisable and receive upon
such surrender, without any payment to the Corporation or a Subsidiary (other
than amounts necessary to satisfy Withholding Tax Liabilities with respect to
the Option) that number of Shares (equal to the highest whole number of Shares)
having an aggregate Fair Market Value as of the date of surrender equal to that
number of Shares subject to the Option (or portion thereof) being surrendered
multiplied by an amount equal to the excess of (i) the Fair Market Value of a
Share on the date of surrender over (ii) the Option Price, plus an amount of
cash equal to the Fair Market Value of any fractional Share to which the
Optionee might be entitled; any such surrender shall be treated as the exercise
of the Option (or portion thereof); and
(e) for the automatic issuance of a Reload Option covering a
number of Shares equal to the number of any Shares used to pay the Option Price;
D. to construe and interpret the Agreements and the Plan;
E. to require, whether or not provided for in the pertinent Agreement, of
any person exercising an Option or acquiring Shares of Bonus Stock, at the time
of such exercise or acquisition, the making of any representations or agreements
which the Committee may deem necessary or advisable in order to comply with the
securities laws or the United States or of any state; and
F. to make all other determinations and take all other actions necessary
or advisable for the administration of the Plan.
Any determinations or actions made or taken by the Committee pursuant to
this Article shall, subject to the express provisions of this Plan, be binding
and final.
4. Eligibility
Options and Bonus Stock may be granted or awarded only to Employees,
provided, however, that members or the Committee are not eligible to receive
Options or Bonus Stock. Subject to the limitations of Section 5.A, an Employee
who has been granted an Option or Bonus Stock may be granted additional Options
or Bonus Stock.
- 3 -
<PAGE>
5. Stock Subject to the Plan
A. Subject to adjustment as provided in Article 11, an aggregate of
4,500,000 authorized and unissued Shares, reissued treasury Shares, or Shares
otherwise acquired by the Corporation, may be issued under the Plan upon the
exercise of Options or pursuant to awards of Bonus Stock, provided, however,
that no Employee may be granted Options and awarded Bonus Stock covering more
than 50% of the number of Shares issuable under the Plan.
B. If an Option expires or terminates for any reason without having been
fully exercised, or if Shares of Bonus Stock are forfeited, the unpurchased
Shares which had been subject to the Option at the time of its expiration or
termination, or the forfeited Shares of Bonus Stock, shall become available for
the grant of other Options or for the award of additional Shares of Bonus Stock,
provided, that in the case of forfeited Shares and to the extent necessary to
satisfy the provisions of Rule 16b-3 under the Exchange Act, the Grantee has
received no dividends prior to forfeiture with respect to such Shares.
6. Options
A. Subject to the provisions of this Plan, the Committee is hereby
authorized to grant Options to Employees.
B. All Agreements granting Options shall contain a statement that the
Option is intended to be a nonstatutory stock option and not an incentive stock
option as defined in section 422 of the Code.
C. The Option Period shall be determined by the Committee and
specifically set forth in the Agreement, provided, however, that an Option shall
not be exercisable before six months from the Date of Grant (except that this
limitation need not apply in the event of the death of the Optionee within the
six-month period) and no Option shall be exercisable after ten years after the
Date of Grant.
D. By accepting the grant of an Option under the Plan, each Optionee
agrees, for the Optionee and his or her successors, that the Option may not be
exercised at any time that the Corporation does not have in effect a
registration statement under the Securities Act of 1933, as amended, relating to
the offer of Common Stock to the Optionee under the Plan, unless the Corporation
agrees to permit such exercise, and that, upon the issuance of any Shares upon
the exercise of the Option, the Optionee will, upon the request of the
Corporation, agree in writing that he or she is acquiring such Shares for
investment only and not with a view to resale, and that he or she will not sell,
pledge or otherwise dispose of such Shares so issued unless and until (i) the
Corporation is furnished with an opinion of counsel to the effect that
registration of such Shares pursuant to the Securities Act of 1933, as amended,
is not required by that Act and the rules and regulations thereunder; (ii) the
staff of the Securities and Exchange Commission has issued a "no-action" letter
with respect to such disposition; or (iii) such registration or notification as
is, in the opinion of counsel for the Corporation, required for the lawful
disposition of such Shares has been filed by the Corporation and has become
effective; provided, however, that the Corporation shall not be obligated to
file any such registration or notification. The Option shall further agree that
the Company may place a legend embodying such restriction on the certificates
evidencing such shares.
- 4 -
<PAGE>
E. All other terms of Options granted under the Plan shall be determined
by the Committee in its sole discretion, as exercised consistently with the
terms of the Plan, and specifically set forth in the Optionee's agreement. Any
terms of Options determined by the Committee that vary from the express terms
set forth in the Plan also shall be specifically set forth in the Optionee's
Agreement.
7. Exercise
A. An Option may, subject to the provisions of the Agreement under which
it was granted, be exercised in whole or in part by the delivery to the
Corporation of written notice of the exercise, in such form as the Committee may
prescribe, accompanied by full payment of the Option Price for the Shares with
respect to which the Option is exercised in accordance with Section 7.B, and by
satisfaction by the Optionee of Withholding Tax Liabilities in accordance with
Article 10.
B. The Option Price may be paid in the form of (i) cash, which may
include an assignment of the right to receive cash proceeds of the sale of
Common Stock subject to the Option pursuant to a "cashless exercise" of the
Option through a transaction with a broker, (ii) duly endorsed certificates
representing Shares (other than Shares that are subject to a substantial risk of
forfeiture) having a Fair Market Value on the Date of Exercise aggregating not
more than the portion of the Option Price being paid by delivery of such Shares,
or (iii) a combination of cash and Shares as provided in Sections 7.B(i) and
(ii).
C. To the extent required to comply with Treasury Regulation
ss.1.401(k)-1(d)(2)(iv)(B)(4), or any amendment or successor thereto, an
Optionee's "elective and employee contributions" (within the meaning of such
Treasury Regulation) under the Plan shall be suspended for a period of twelve
months following such Optionee's receipt of a hardship distribution made in
reliance on such Treasury Regulation from any plan containing a cash or deferred
arrangement under Section 401(k) of the Code maintained by the Corporation or a
related party within the provisions of subsections (b), (c), (m) or (o) of
Section 414 of the Code.
8. Nontransferability
Options granted under the Plan shall not be transferable otherwise than
(a) by will or the laws of descent and distribution, or (b) pursuant to a
qualified domestic relations order as defined in Section 414(p) of the Code or
Title I of the Employee Retirement Income Security Act or the rules thereunder,
and an Option may be exercised, during the Optionee's lifetime, only by the
Optionee or, in the case of the Optionee's legal disability, by the Optionee's
legal representative.
9. Bonus Stock
A. Subject to the provisions of this Plan, the Committee is hereby
authorized to award Bonus Stock to Employees.
B. Bonus Stock shall be Shares that shall be issued at such times,
subject to achievement of such performance or other goals and on such other
terms and conditions as the Committee shall deem appropriate.
- 5 -
<PAGE>
10. Satisfaction of Withholding Tax Liabilities
Each Optionee or Grantee must provide the Corporation with the means to
satisfy the Corporation's Withholding Tax Liabilities, with respect to any
income recognized by the Optionee or Grantee as a result of the exercise of an
Option or award of Bonus Stock. Unless otherwise determined by the Committee and
specifically set forth in the Optionee's or Grantee's Agreement, an Option or
Grantee may satisfy Withholding Tax Liabilities by (i) delivering cash to the
Corporation, (ii) electing to have the Corporation retain Shares otherwise
issuable on the exercise of the Option or pursuant to the award of Bonus Stock
(other than Shares that are subject to a substantial risk of forfeiture), (iii)
delivering shares (other than Shares that are subject to a substantial risk of
forfeiture) to the Corporation, or (iv) electing to satisfy Withholding Tax
Liabilities through a combination of clauses (i), (ii) or (iii) of this Article
10. Satisfaction of Withholding Tax Liabilities also shall be accomplished under
such additional reasonable terms and conditions as the Committee deems
appropriate. Unless otherwise determined by the Committee and specifically set
forth in the Optionee's or Grantee's Agreement, in the case of an Insider who
elects to satisfy Withholding Tax Liabilities by having the Corporation retain
Shares otherwise issuable on the exercise of an Option or pursuant to an award
to Bonus Stock, the Insider shall have the right to so satisfy Withholding Tax
Liabilities through (a) an irrevocable election made at least six months in
advance of the date on which the Withholding Tax Liabilities arise, and (b) if
the Withholding Tax Liabilities arise during the ten business day period
beginning on the third business day following the public release of the
Corporation's quarterly or annual earnings ("Window Period"), an irrevocable
election made during such Window Period.
11. Capital Adjustments
The number and class of Shares subject to each outstanding Option or
award of Bonus Stock, the Option Price and the aggregate number and class of
Shares for which grants or awards thereafter may be made shall be equitably
adjusted by the Committee to reflect such events as stock dividends, stock
splits, extraordinary cash dividends, adoption of stock rights plans, split-ups,
split-offs, spin-offs, liquidations, combinations or exchange of shares,
recapitalizations, mergers, consolidations, reorganizations or any similar
transaction of or by the Corporation.
12. Termination or Amendment
The Board shall have the power to terminate the Plan and to amend it in
any respect, provided that, after the Plan has been approved by the shareholders
of the Company, the Board may not, without the approval of the shareholders of
the Company if such approval is then required by applicable law or in order for
the Plan to continue to satisfy the requirements of Rule 16b-3 under the
Exchange Act, amend the Plan so as to increase materially the number of Shares
that may be issued under the Plan (except as provided in Article 11), to modify
materially the requirements as to eligibility for participation in the Plan, or
to increase materially the benefits accruing to participants under the Plan. No
termination or amendment of the Plan shall, without his or consent, adversely
affect the rights or obligations of any Optionee or Grantee.
13. Modification, Extension and Renewal of Options and Bonus Stock
Subject to the terms and conditions and within the limitations of the
Plan, the Committee may modify, extend or renew outstanding Options, or accept
the surrender of outstanding Options (to the extent not theretofore exercised)
granted under the Plan or under any other plan of the Corporation, or a company
or similar entity acquired by the Corporation or a Subsidiary, and authorize the
granting of new Options (to the extent not theretofore exercised), pursuant to
the Plan in substitution therefor and the substituted Options may specify a
- 6 -
<PAGE>
lower exercise price than the surrendered Options, a longer term than the
surrendered Options or have any other provisions that are authorized by the
Plan. Subject to the terms and conditions and within the limitations of the
Plan, the Committee may modify the terms of any outstanding Agreement providing
for an award of Bonus Stock. Notwithstanding the foregoing, however, no
modification of an Option granted under the Plan, or an award of Bonus Stock,
shall, without the consent of the Optionee or Grantee, alter or impair any of
the Optionee's or Grantee's right or obligations.
14. Effectiveness of the Plan
The Plan and any amendments requiring shareholder approval pursuant to
Article 12 are subject to approval by vote of the shareholders of the
Corporation within 12 months after their adoption by the Board. Subject to that
approval, the Plan and any amendments are effective on the date on which they
are adopted by the Board. Options and Bonus Stock may be granted or awarded
prior to shareholder approval of the Plan or amendments, but each such Option or
Bonus Stock grant or award shall be subject to the approval of the Plan or
amendments by the shareholders. Except to the extent required to satisfy the
requirements of Rule 16b-3 under the Exchange Act, the date on which any Option
or Bonus Stock granted or awarded prior to shareholder approval of the Plan or
amendment is granted or awarded shall be the Date of Grant for all purposes as
if the Option or Bonus Stock had not been subject to approval. No Option may be
exercised prior to such shareholder approval, and any Bonus Stock awarded shall
be forfeited if such shareholder approval is not obtained.
15. Term of the Plan
Unless sooner terminated by the Board pursuant to Article 12, the Plan
shall terminate on December 6, 2003, and no Options or Bonus Stock may be
granted after termination. The termination shall not affect the validity of any
Options or Bonus Stock may be granted after termination. The termination shall
not affect the validity of any Option or Bonus stock outstanding on the date of
termination.
16. Indemnification of Committee
In addition to such other rights of indemnification as they may have as
Directors or as members of the Committee, the members of the Committee shall be
indemnified by the Corporation against the reasonable expenses, including
attorneys' fees, actually and reasonably incurred in connection with the defense
of any action, suit or proceeding, or in connection with any appeal therein, to
which they or any of them may be a party by reason of any action taken or
failure to act under or in connection with the Plan or any Option or Bonus Stock
granted or awarded hereunder, and against all amounts reasonably paid by them in
settlement thereof or paid by them in satisfaction or judgment in any such
action, suit or proceeding, if such members acted in good faith and in a manner
which they believed to be in, and not opposed to, the best interests of the
Corporation.
17. General Provisions
A. The establishment of the Plan shall not confer upon any Employee any
legal or equitable right against the Corporation, any Subsidiary or the
Committee, except as expressly provided in the Plan.
B. The Plan does not constitute inducement or consideration for the
employment of any Employee, nor is it a contract between the Corporation or a
Subsidiary and any Employee. Participation in the Plan shall not give an
Employee any right to be retained in the service of the Corporation or
Subsidiary.
- 7 -
<PAGE>
C. The Corporation and is Subsidiaries may assume options, warrants, or
rights to purchase stock issued or granted by other corporations whose stock or
assets shall be acquired by the Corporation or a Subsidiary, or which shall be
merged into or consolidated with the Corporation or a Subsidiary. Neither the
adoption of this Plan, nor its submission to the shareholders, shall be taken to
impose any limitations on the powers of the Corporation or its affiliates to
issue, grant, or assume options, warrants, rights, or bonus stock, otherwise
than under this Plan, or to adopt other stock option stock or bonus stock plans
or to impose any requirement of shareholder approval upon the same.
D. The interests of any Employee under the Plan are not subject to the
claims of creditors and may not, in any way, be assigned, alienated or
encumbered except as provided in Article 8.
E. The Plan and each Agreement shall be governed, construed and
administered in accordance with the laws of the State of Delaware.
F. The adoption of the Plan, the grant and exercise of Options and the
award of Bonus Stock shall be subject to receipt of all required regulatory
approvals, including without limitation any required approvals of the Federal
Communications Commission.
G. Should any provision of the Plan that is intended to comply with the
provisions of Rule 16b-3 under the Exchange Act at the date of the adoption of
the Plan by the Board not be necessary for such compliance, or become no longer
necessary for such compliance, such provision of the Plan shall have no force or
effect under the Plan as of the date that such provision is not required for
purpose of satisfying the provisions of Rule 16b-3 under the Exchange Act.
- 8 -
<PAGE>
May 20, 1998
American Mobile Satellite Corporation
10802 Parkridge Boulevard
Reston, Virginia 20191-5416
American Mobile Satellite Corporation
Registration Statement on Form S-8
Dear Sirs:
I have acted as your counsel in connection with the preparation and
filing with the Securities and Exchange Commission under the Securities Act of
1933, as amended (the "Securities Act"), of a Registration Statement on Form S-8
(the "Registration Statement") relating to 1,000,000 additional shares of Common
Stock, par value $.01 per share ("Common Stock"), of American Mobile Satellite
Corporation, a Delaware corporation ("AMSC"), issuable under the 1989 Stock
Option Plan (the "Plan").
In so acting, I have examined the Plan and have examined and relied upon
the originals, or copies certified to my satisfaction, of such records,
documents or other instruments as in my judgment are necessary or appropriate to
enable me to render the opinion set forth below.
Based on the foregoing, I am of the opinion that authorized but not
previously issued shares of Common Stock which may be delivered upon the
exercise of options granted under the Plan or acquired under the Plan have been
duly authorized and when issued in accordance with the terms of the Plan will be
validly issued, fully paid and non-assessable.
In giving the foregoing opinion, I have assumed that at the time any
shares are issued upon exercise of the options or acquired pursuant to the Plan,
a sufficient number of shares of Common Stock which are not then reserved for
issuance for other purposes shall be authorized for issuance to cover the
issuance of such additional shares.
I hereby consent to the filing of this opinion as an exhibit to the
Registration Statement. In giving such consent, I do not thereby concede that I
am within the category of persons whose consent is required under Section 7 of
the Act or the Rules and Regulations of the Securities and Exchange Commission
thereunder.
Very truly yours,
/s/ Randy S. Segal
Randy S. Segal
General Counsel
<PAGE>
CONSENT OF INDEPENDENT PUBLIC ACCOUNTANTS
As independent public accountants, we hereby consent to the incorporation by
reference in this registration statement on Form S-8 of our report dated March
31, 1998 included in American Mobile Satellite Corporation's Form 10-K for the
year ended December 31, 1997 and to all references to our Firm included in this
registration statement.
/s/Arthur Andersen LLP
ARTHUR ANDERSEN LLP
Washington, D.C.
May 20, 1998
