Exhibit 10.30


 


EXECUTION VERSION




 


GRANT AGREEMENT

(Non-Qualified Share Options/Tandem SARs)


 


THIS AGREEMENT, made
as of this the 25th day of August 2017 among Telesat Canada, formed as a result of an amalgamation of Telesat Holdings
Inc., Telesat Interco Inc. and Telesat Canada on January 1, 2017 (the “Company”), Michel G. Cayouette (the “Participant”),
and for the purposes of Sections 11, 12, 13, 15, 16 and 18 only, Loral Space & Communications Inc. (“Loral”),
and for the purposes of Sections 11, 12, and 13 only, the Public Sector Pension Investment Board (“PSP”),
and only for the purposes of Sections 16, 17(b) and 21, 4440480 Canada Inc. (the “Special Purchaser”, collectively
with the Company, the Employer, the Participant, Loral and PSP, the “Parties”).


 


WHEREAS, the Company
has adopted and maintains the Telesat Holdings Inc. Management Stock Incentive Plan (the “Plan”) to promote
the interests of the Company and its Affiliates and shareholders by providing the Company and its Affiliates’ key employees
with an appropriate incentive to encourage them to continue in the employ of and provide services for the Company or its Affiliates
and to improve the growth and profitability of the Company and its Affiliates;


 


WHEREAS concurrent with
the Grant hereunder, the Participant surrenders all rights under the grant agreement executed November 18, 2013 (the “Previous
Grant”), and all rights surrendered by the Participant are cancelled by the Company in exchange for rights granted to
the Participant hereunder to acquire Shares of the Company as set out herein.


 


WHEREAS, the Plan provides
for the Grant to Participants in the Plan of Non-Qualified Share Options and Tandem SARs to purchase Shares of the Company.


 


NOW, THEREFORE, in consideration
of the premises and the mutual covenants hereinafter set forth, the parties hereto hereby agree as follows:


 


1.             Incorporation
of Plan. All terms, conditions and restrictions of the Plan, including the Accession Agreement, and the Employment Agreement
are incorporated herein and made part hereof as if stated herein and the terms hereof are incorporated in the Plan as it applies
to the Participant. If there is any express conflict between the terms and conditions of the Plan and this Grant Agreement, the
terms and conditions of this Agreement shall govern. All capitalized terms used and not defined herein shall have the meaning given
to such terms in the Plan.


 


2.             Grant
of Options. Pursuant to, and subject to, the terms and conditions set forth herein and in the Plan, the Company and the Employer
hereby grant to the Participant a NON-QUALIFIED SHARE OPTION (the “Option”) with respect to 270,000 Shares.


 






     


     


    

 


3.             Grant
of Tandem SARs.


 


(a)           Each
Option shall be accompanied by a TANDEM SAR at the SAR Base Price (per Share). The Tandem SAR constitutes an unfunded and unsecured
promise of the Company to deliver (or cause to be delivered) to the Participant a combination of Shares and cash (as determined
by the Committee, in its discretion, subject to the provisions of this Section 3) at the time such Tandem SAR is exercised, equal
in value to the excess, if any, of the Fair Market Value per Share over the SAR Base Price per Share of the Tandem SAR. In no event
shall the amount of such excess that the Company shall deliver (or cause to be delivered) to the Participant in cash exceed the
minimum mandatory statutory amount of withholding taxes due to the applicable Canadian federal and provincial and applicable United
States federal, state and local taxing authorities with respect to the exercise of the Tandem SAR (the "Minimum Withholding
Amount").


 


(b)           The
Participant may exercise the Tandem SAR, in whole or in part, pursuant to the terms of the Plan and the Grant Agreement provided
that, if Section 3(c) below applies no less than fifteen (15) business days (and no more than thirty (30) business days) in advance
of the effective date of the proposed exercise the Participant shall give the Committee written notice of his intention to exercise
the Tandem SAR, in whole or in part, and the number of Shares underlying the Option involved. Upon receipt of such notice, the
Committee shall promptly notify the Participant whether the Company is prohibited by applicable law or prohibited under any credit
agreement (or other debt agreement) applicable to the Company from (x) permitting such exercise of the Tandem SAR, in whole or
in part, or (y) from making the payment of the amounts in accordance with Section 3(c) below (an “Applicable Restriction”)
at the time the Participant provides the notice of an intent to exercise. In the case of an Applicable Restriction, the Participant
shall not be permitted to exercise the Tandem SAR, in whole or in part, to the extent restricted by the Applicable Restriction,
but may, but shall not be obligated to, exercise all or part of the Option and utilize the Special Purchase Rights (as described
in Section 17(b)) with regard to the amounts necessary to pay the Exercise Price and the Minimum Withholding Amount (provided that
the Special Purchase Rights shall not be available if both (x) the Company’s public common shares are publicly traded and
(y) Participant is otherwise free to sell the Shares acquired under the Option). Any exercise of all or part of the Tandem SAR
or use of the Special Purchase Rights shall be accomplished within thirty (30) business days after notification by the Committee
that exercise of the Tandem SAR is or is not permitted. If the exercise or utilization is to occur thereafter, a new notice of
intent to exercise shall be required.


 


(c)           Notwithstanding
Section 3(a) but subject to Section 3(b), if exercise of a Tandem SAR, in whole or in part, occurs during employment (while Cause
does not exist and there is no current intent to voluntarily resign without “Good Reason” (as defined in the Participant’s
Employment Agreement)) or following a Termination of Employment other than a termination for Cause or a voluntary termination without
Good Reason, and is not prohibited by Section 3(b), the Minimum Withholding Amount shall be delivered in cash. The remainder of
such excess shall be delivered in Shares. Fractional Shares will not be delivered and the number of Shares to be delivered upon
any exercise by the Participant of the Tandem SAR, in whole or in part, granted herein shall be rounded up to the nearest whole
Share and the amount of cash to be delivered to the Participant upon such exercise shall be rounded down. Until such delivery,
the Participant has only the rights of a general unsecured creditor and no rights as a shareholder of the Company in respect to
such Shares.


 


4.             Option/Tandem
SAR: The Tandem SAR shall vest, become exercisable, and terminate at the same times and under the same terms as the Option
granted herein. The exercise of all or part of the Option shall cause the same proportion of the Tandem SAR to automatically terminate
and the exercise of all or part of the Tandem SAR shall cause the same proportion of the Option to automatically terminate. Only
the Option or the Tandem SAR, and not both, may be exercised in whole or in part at any time.


 




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5.             Grant
Date. The Grant Date of the Award hereby granted is August 25, 2017.


 


6.             Exercise
Price. The Exercise Price of each Share underlying the Option hereby granted is CAD $24.20.


 


7.             Grant
Term. Subject to the terms of the Plan and Section 14 hereof as to earlier termination of the exercise period of the Award,
the exercise period of the Award shall expire on April 5, 2023.


 


8.             Vesting.


 


(a)          Notwithstanding
Section 5 of the Plan, the Option shall be immediately vested and exercisable with respect to 58,284 of the Shares underlying the
Option.


 


(b)          Notwithstanding
Section 5 of the Plan, the remaining Option shall become vested and exercisable as set out on Schedule
A hereto.


 


9.             Delays
or Omissions. No delay or omission to exercise any right, power or remedy accruing to any party hereto, upon any breach or
default of any party under this Grant Agreement, shall impair any such right, power or remedy of such party nor shall it be construed
to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter
occurring, nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or
thereafter occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or
default under this Grant Agreement, or any waiver on the part of any party or any provisions or conditions of this Grant Agreement,
shall be in writing and shall be effective only to the extent specifically set forth in such writing.


 


10.           Limitation
on Transfer. No Shares obtained pursuant to the exercise of the Award granted herein shall be transferred except subject to
the terms set forth in Schedule B hereto.


 






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11.           Drag-Along
Rights in Respect of Shares Issuable Upon Exercise of the Award.


 


(a)          Provided
that Loral or PSP and their respective Affiliates and their Permitted Transferees (as defined in the Unanimous Shareholder Agreement)
(such shareholders and their respective Affiliates and Permitted Transferees being referred to in this Agreement as the “Relevant
Shareholders”) collectively hold a number of Equity Shares of the Company which is not less than 25% of the total number
of Equity Shares then outstanding on a fully diluted basis, if a Relevant Shareholder proposes to Transfer to any person (the “Drag-Along
Transferee”) at arm’s length from such Relevant Shareholder (for purposes of this Section 11 only, any such Relevant
Shareholder that is proposing such Transfer, a “Selling Shareholder”) some or all of the Equity Shares then
held by the Selling Shareholder, in a bona fide transaction (a “Drag-Along Sale”), then the Selling Shareholder(s)
may elect (a “Drag-Along Election”) to require the Participant (but provided that all Participants are being
similarly required with regard to their fully vested Shares but not necessarily unvested Shares) to sell to the Drag-Along Transferee
up to that number of Shares issued upon exercise of any vested Award equal to the product of (such product being the “Draggable
Amount”) (x) a fraction, the numerator of which is the number of Equity Shares (on a fully diluted basis) as is proposed
to be sold by the Selling Shareholder(s) and the denominator of which is the aggregate number of Equity Shares (on a fully diluted
basis) owned as of the date of the Drag-Along Notice (as defined below) by all Relevant Shareholder(s), and (y) the number of Shares
then owned by the Participant and issued upon the exercise of the Award plus the number of Shares issuable upon the exercise of
the Award whether or not vested, as of the date of the Drag-Along Notice, at the purchase price and upon the other terms and subject
to the conditions of the Drag-Along Sale (including the kind and amount of consideration to be paid for such Equity Shares), all
of which shall be set forth in the Drag-Along Notice. To the extent that the number of Shares issued upon exercise of any vested
portion of any Award that is held by the Participant is less than the Draggable Amount calculated pursuant to this section, a portion
of the Time-Vesting Option (but not the Performance-Vesting Option) not otherwise vested and exercisable shall become vested and
exercisable based on the earliest thereafter vesting tranches being vested before later vesting tranches and the Participant shall
be required, conditioned on the closing of the Drag-Along Sale, to exercise such portion of such Award and Transfer the resulting
Shares in the manner provided in the previous sentence. Without any obligation to do so, the Company may elect to vest an amount
of the Unvested Options up to the amount necessary to reach the Draggable amount (in such order as the Company shall elect) and
such Options shall then be treated as vested for purposes of the Drag-Along Sale. For the purposes of this Section 11, an Award
will be deemed to be vested for purposes of this Section 11 if and to the extent that such Award would vest pursuant to Section
14(a) immediately prior to the close of the Drag-Along Sale. The Participant shall be responsible to the Selling Shareholders for
the Participant’s pro rata share of a reasonable estimate of the out-of-pocket transactional expenses to be paid by
the Selling Shareholders, as determined by the Selling Shareholders, incurred in connection with the Drag-Along Sale. Without limiting
the foregoing liability, the Selling Shareholders shall be entitled to agree with the purchaser for the payment of such pro
rata share directly, to the Selling Shareholders out of sale proceedings.


 


(b)          The
rights set forth in Section 11(a) shall be exercised by the Selling Shareholder giving written notice by delivery of a true and
complete copy of the offer to purchase from the Drag-Along Transferee together with all relevant agreements (the “Drag-Along
Notice”) to each Participant which shall specifically identify the identity of the proposed Drag-Along Transferee, the
number of Equity Shares proposed to be sold to the Drag-Along Transferee, the purchase price therefor, the material terms and conditions
of the proposed Drag-Along Sale and the proposed closing date of the Drag-Along Sale.


 


(c)          The
Selling Shareholders may assign to the Drag-Along Transferee their rights under this Section 11 and Section 12 hereof,
and in such event, the Drag-Along Transferee shall be treated as if it is the Selling Shareholder thereafter.


 


(d)          This
Section 11 shall not apply to sales made in connection with an Initial Public Offering or other sales made into the public market.


 




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12.           Tag
Along Rights in respect of Shares Issuable Upon Exercise of the Award.


 


(a)          No
Relevant Shareholder shall sell, offer to sell or agree to sell any Equity Shares (other than (i) sales of Equity Shares by a Relevant
Shareholder to any other Relevant Shareholder, (ii) sales made in connection with an Initial Public Offering or other sales made
into the public market, (iii) sales of Equity Shares by a Relevant Shareholder(s) to its or their Affiliate, (iv) a sale by PSP
(or an Affiliate) of Equity Shares to a shareholder who through such sale acquires a right to nominate directors of the Company
but not a proportionate share of PSP’s Equity Interest, (v) a transfer to a Permitted Transferee as defined in Section 7.04(l)
of the Unanimous Shareholder Agreement, (vi) in a PSP Sell-Down (as defined in the Unanimous Shareholder Agreement) or (vii) sales
aggregated with all other Transfers by Relevant Shareholders of less than 5% of Equity Shares collectively owned by all Relevant
Shareholders as of the Grant Date), unless the applicable offer is in writing and provides, as a condition precedent to its completion,
that the proposed purchaser grants to the Participant the right to require the proposed purchaser to purchase, at the discretion
of the Participant, some or all of that proportion of the Shares owned by the Participant and issued upon exercise of the Award,
plus Shares of the Participant issuable upon exercise of the Award whether or not vested, as is equal to the product of (x) the
Tag-Along Percentage, and (y) the number of Shares then owned by the Participant and issued upon the exercise of the vested
Award or any unvested Time-Vesting Option (but not unvested Performance-Vesting Options), as of the date of the Tag-Along Notice,
at a price per Share, and upon the other terms and subject to the other conditions (including kind and amount of consideration)
as is set forth in the offer to the Selling Shareholder(s) (a “Tag-Along Sale”); provided, however, that (without
limiting the rights of Loral or PSP under this Agreement, including, without limitation, Sections 11 and 15) the obligations
of each Relevant Shareholder set forth in this Section 12(a) shall cease in the event that, subject to the prior written consent
of Loral and PSP, the Participant enters into a separate agreement or arrangement with the proposed purchaser or the Company regarding
the treatment of the Shares owned by the Participant and issued upon exercise of the Award in connection with any such sale (or
proposed sale) by a Relevant Shareholder. The “Tag-Along Percentage“ means a fraction, the numerator of which
is the number of Equity Shares as is proposed to be sold by the Relevant Shareholder(s) who are proposing such sale (for purposes
of this Section 12 only, such Relevant Shareholder, a “Selling Shareholder”) and the denominator of which is
the aggregate number of Equity Shares then owned by all Relevant Shareholders; provided that if the Tag-Along Sale is for all of
PSP’s and its Affiliates’ Equity Shares (a “Qualifying Tag-Along Sale”) and is entered into in connection
with, or contemporaneously with, a Loral Transaction (as defined herein), then the Tag-Along Percentage shall equal 100%.


 




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(b)          Notwithstanding
Section 12(a) above, in the event of a Qualifying Tag-Along Sale, with respect to the Applicable Percentage of the Participant’s
Shares (whether issued or issuable upon exercise of his Award and whether vested or unvested): (i) the purchase price per Share
shall be the Implicit Loral Purchase Price Per Telesat Share, and (ii) the consideration payable by the buyer in the Qualifying
Tag-Along Sale shall, except as otherwise consented to by Loral and the Participant, be the same Non-Cash/Mixed Consideration as
is paid to the holders of Loral Common Stock in the Loral Transaction; provided that the consent of the Participant shall not be
required where some or all of the Non-Cash/Mixed Consideration is replaced with cash consideration. “Applicable Percentage”
means the number of Equity Shares owned by Loral immediately prior to the Qualifying Tag-Along Sale, divided by the number of Equity
Shares outstanding immediately prior to the Qualifying Tag-Along Sale excluding Equity Shares issued or issuable upon the exercise
of any Award, such result expressed as a percentage. “Implicit Loral Purchase Price Per Telesat Share” means
the Loral Stake FMV divided by the number of Equity Shares owned by Loral immediately prior to the transaction with respect to
which the calculation is being made. In addition, if the Participant fails to exercise his tag along rights in the event of a Qualifying
Tag-Along Sale, Loral shall have a Loral Call as provided in Section 15(f) and the Relevant Shareholders (as applicable) shall
have drag-along rights as provided in Section 11.


 


(c)          The
Selling Shareholder(s) shall give notice of any proposed sale to the Participant (the “Tag-Along Notice”) and
shall permit the Participant to have not less than 20 days to accept such offer in a manner which permits the Participant to specify
the number of Shares which the Participant wishes to sell. To the extent necessary in order to effect the Tag-Along Sale (and only
to such extent), and conditional upon the closing of the Tag-Along Sale, any portion of the time-vesting portion of the Award of
the Participant not vested and exercisable shall become vested and exercisable to the extent that the Shares issuable upon such
exercise may be included in the Tag-Along Sale based on the earliest unvested tranches vesting first. For the purposes of this
Section 12, an Award will be deemed to be vested for purposes of subsection (y) above if and to the extent that such Award would
vest pursuant to Section 14(a) immediately prior to the close of the Tag-Along Sale. The completion of the sale of such Shares
by the Participant shall be subject to completion of the sale of Equity Shares by the Selling Shareholder(s) and vice versa.
If the Participant exercises tag-along rights pursuant to this Section 12, the Participant shall be responsible to the Selling
Shareholders for his pro rata share of a reasonable estimate of the transactional expenses of the Selling Shareholders,
as determined by the Selling Shareholders, in connection with the Tag-Along Sale, and the Selling Shareholders shall be entitled
to agree with the purchaser for the payment of such pro rata share of the reasonable estimate of the transactional expenses,
as determined by the Selling Shareholders, to the Selling Shareholders.


 


(d)          If
any transfer of Equity Shares to a Permitted Transferee or Affiliate is exempt from this Section 12, as set forth above, as a condition
of such Transfer, the transferee shall agree that any subsequent Transfer of such Equity Shares shall be subject to this Section 12.


 


(e)          In
the case of any initial public offering in which a Selling Shareholder transfers its Equity Shares, Participant shall be entitled
to the vesting acceleration described in this Section 12 as though such transfer were subject to this Section 12, with regard to
the unvested Awards necessary to be vested and exercised to sell the Shares in the initial public offering pursuant to
item (iv) of Schedule B and Participant shall have no rights to tag along on any public offering under this Section 12 (but shall
have the rights under item (iv) of Schedule B).


 






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13.         Sale
Procedures


 


		(a)	In connection with any Drag-Along Sale, or any Tag-Along Sale which the Participant agrees to accept,
all Participants shall be obligated, if applicable and if permitted by law, to vote (or consent in writing, as the case may be,
in respect of) all Shares held by them in favour of any Drag-Along Sale or Tag-Along Sale being effected by merger, amalgamation,
consolidation, plan of arrangement, share sale, asset sale or other type of business combination requiring shareholder approval
and the Participant shall in all other respects support the transaction contemplated by the Drag-Along Sale or Tag-Along Sale and
shall be obligated to take all reasonable actions and to reasonably cooperate in the consummation of the transaction contemplated
thereby and shall execute all documents, including a sale, purchase, amalgamation, reorganization or merger agreement, reasonably
requested by the Selling Shareholder(s) containing the terms and conditions of the Drag-Along Sale or Tag-Along Sale; provided,
however, that such terms and conditions shall include the following: (i) any representations and warranties from the Participants
shall be on a several and not joint basis; and (ii) the maximum liability of each Participant (other than for fraud or intentional
misrepresentation as to ownership or the existence of a lien) under such Drag-Along Sale or Tag-Along Sale transaction shall be
limited to the purchase price received by such Participant.



 


		(b)	No Participant shall exercise any rights of appraisal or dissent rights that such Participant may
have (whether under applicable law or otherwise) or could potentially have or acquire in connection with any Drag-Along Sale or
Tag-Along Sale or any proposal that is necessary or desirable to consummate the Drag-Along Sale or Tag-Along Sale.



 


		(c)	All Transfers of Shares, including Shares issuable upon exercise of the Award to the Drag-Along
Transferee pursuant to Section 11 or the Tag-Along Transferee pursuant to Section 12, shall be consummated contemporaneously on
the closing date specified in the Drag-Along Notice or offer of Tag-Along Sale and, if any Participant shall not have taken such
steps as are necessary to Transfer Shares and/or exercise the Award to be exercised as provided above in Section 11, in order for
the Shares to be so Transferred, such Participant shall be deemed to have appointed each Selling Shareholder as his true and lawful
attorney in fact to take all such actions and to sign all such documents as are necessary or, in the reasonable view of the Selling
Shareholder, desirable in order to effect such Transfer. In such event, the Selling Shareholder shall hold the purchase price for
such Shares in trust for the Participant, pending acknowledgement in writing of the Transfer by the Participant.



 


14.           Revised
Vesting and Exercise Time Period.


 


(a)          Immediately
prior to either a Change of Control or a Loral Only Change of Control (as defined in Section 15), (i) the Time-Vesting Options
will vest in full, (ii) the portion of the Performance-Vesting Options for which the opportunity to vest has occurred, but which
have not vested, shall be cancelled and cease to be outstanding, and (iii) the portion of the Performance-Vesting Options for which
the opportunity to vest has not yet occurred shall become vested and exercisable as to all shares thereunder.


 




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(b)          Instead
of the provisions set forth in Section 5.4.2 of the Plan, the following provisions will apply:


 


		(i)	(A) upon termination of the Participant’s employment by the Participant without Good Reason
at any time (x) before September 17, 2015 (y) between September 18, 2015 and September 17, 2016, if Daniel Goldberg ceases to be
employed by the Company for any reason within six (6) months prior to such termination or (z) if Cause exists at the time of such
termination or (B) upon termination of the Participant’s employment by the Company for Cause at any time, the Award, whether
vested and exercisable on or prior to the date of such termination, or not, shall immediately as of such date of termination be
forfeited.



 


		(ii)	upon termination of the Participant’s Employment by the Company at any time without Cause,
or by the Participant for Good Reason, the portion of the Award that would have become vested in the one-year period immediately
following the date of termination shall immediately become vested and exercisable, in full, and shall continue to be exercisable
for a period of 180 days following such date, and thereafter shall be forfeited.



 


		(iii)	if the Participant’s Employment terminates as a result of death or Disability of the Participant,
the portion of the Award that would vest within one year of the date of termination of employment shall immediately vest.



 


		(iv)	in the event of the death or Disability Termination of the Participant, the vested portion of the
Award shall continue to be exercisable for a period of one year from the Participant’s termination of employment as a result
of death or Disability, and thereafter shall be forfeited.



 


		(v)	upon termination of the Participant’s Employment by the Participant without Good Reason at
any time on or after September 17, 2015 (except as provided in Section 14(b)(i)(A)(y) or (z)), the vested portion of the Award
shall be exercisable for a period of 90 days following such date, and thereafter shall be forfeited.



 


(c)          The
provisions of Section 14(b) above shall be subject to Section 5.8.2 of the Plan as to termination of exercise periods to the extent
not based on termination of Employment.


 






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15.           Loral
Transaction.


 


(a)          Loral
Only Change of Control Defined. A “Loral Only Change of Control” shall have occurred when both (i) the holders
of 90% or more of the shares of each class of common stock (the “Common Stock”) of Loral outstanding at the
relevant time, sell, transfer, exchange or otherwise dispose of such shares pursuant to a transaction or series of related transactions
as a result of which any person or group (as such terms are defined in Section 13(d) or Section 14(d) of the Securities Exchange
Act of 1934 (the “Exchange Act”) or any successor provision to either of the foregoing) of persons (the “Acquiror”),
acquires and becomes the beneficial owner (as the term “beneficial owner” is defined under Rule 13d-3 or any successor
rule or regulation promulgated under the Exchange Act) directly or indirectly, of 90% or more of each class of Common Stock; provided
that such Acquiror is not and does not include, or act in concert with, the MHR Fund (as defined in the Unanimous Shareholders
Agreement) (a “Loral Transaction”); and (ii) a Qualifying Tag-Along Sale is not entered into in connection with
or contemporaneous with, the Loral Transaction.


 


(b)          Initial
Public Offering. If the Company completes an Initial Public Offering, then, from and after the later of a Loral Only Change
of Control or the Initial Public Offering, the Sell Down Percentage shall be deemed to be the greater of 64% or as calculated pursuant
to Schedule B. In addition, following the completion of an Initial Public Offering, the following provisions of this Agreement
shall be inapplicable: the proviso in the last sentence of Section 12(a), Section 12(b), and Sections 15(c), (d) and (e).


 


(c)          Notice
of Certain Transactions. As soon as reasonably practicable following such time as Loral enters into an agreement or arrangement
that would reasonably be expected to result in a Loral Only Change of Control, Loral shall inform the Participant (the “Loral
Notification”) of the following: (i) a description of the consideration to be received by Loral shareholders holding
Common Stock (the “Loral Only Change of Control Consideration”) and (ii) the date by which Participant must
provide the Company, Loral and PSP with its LCC Put Notice (as defined below) (which date shall be at least seven (7) days after
the date of the Loral Notification); provided, however, Loral shall not be obligated to deliver the Loral Notification if doing
so would violate any contractual obligation of Loral or its Affiliates or applicable law (a “Loral Notification Restriction”).
Loral agrees to take commercially reasonable efforts to overcome or have waived any Loral Notification Restriction; however, should
Loral be unable to overcome or have waived a Loral Notification Restriction it shall deliver the Loral Notification as soon as
reasonably practicable after such Loral Notification Restriction no longer restricts Loral from providing the Loral Notification.
If there shall be a material change in the Loral Only Change of Control Consideration (a “Material Change”)
from that set forth in the Loral Notification, Loral shall promptly give Participant notice of such change and give him an opportunity
to confirm or revoke his LCC Put Notice (such notification being deemed to be a new Loral Notification and the date set forth therein
for confirmation or revocation of Participant’s LCC Put Notice, the new and applicable date contained in the Loral Notification
(which date shall not be less than seven (7) days following the earlier of (i) the date of the new Loral Notification and (ii)
public disclosure of such change)). In addition, as soon as reasonably practicable following such time as Loral enters into an
agreement or arrangement that would reasonably be expected to result in a Loral Transaction that is not a Loral Only Change of
Control, Loral shall inform the Participant of the existence of such Loral Transaction and a description of the consideration to
be received by Loral shareholders holding Common Stock in such Loral Transaction.


 




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(d)          LCC
Put Right. Upon a Loral Only Change of Control, Participant shall have the right (the “LCC Put Right”) exercised
by providing written notice (the “LCC Put Notice”) to the Company, Loral and PSP, delivered within the timeframes
set forth in Section 15(c), to require that the Company cause the Special Purchaser to purchase (pursuant to Section 17(b)) from
Participant up to a number of shares equal to the product of the Total Shares and the Loral Ownership Percent (which number of
shares shall be the “LCC Put Shares” and shall be specified in the LCC Put Notice) for cash in an amount per
Share equal to the Implicit Loral Purchase Price per Telesat Share (the “Cash Consideration”). “Total
Shares” are the Shares owned by the Participant and issued upon exercise of the Award, plus Shares of the Participant
issuable upon exercise of the Award whether or not vested. The “Loral Ownership Percent” shall be a fraction
the numerator of which is the number of Equity Shares owned by Loral and its Affiliates as of the date immediately preceding the
Loral Only Change of Control and the denominator of which is the aggregate number of all Equity Shares as of such date excluding
Equity Shares issued or issuable upon the exercise of any Award. Participant’s LCC Put Right shall expire unless Participant
shall have delivered an LCC Put Notice in accordance with the provisions of this Section 15. Upon the expiration of Participant’s
LCC Put Right, neither the Company, the Special Purchaser, Loral nor PSP shall have any further obligation to affect the purchase
or Exchange of the LCC Put Shares. Participant acknowledges and agrees that because of the nature of these matters and the transactions
any LCC Put Notice shall be, subject to the penultimate sentence of Section 15(c), irrevocable and binding on the part of Participant.


 


(e)          Company
Put Restriction. Should the Company and/or the Special Purchaser be prohibited by applicable law or prohibited under any credit
agreement (or other debt agreement) applicable to the Company from effecting the purchase pursuant to Sections 15(d) and 17(b)
(a “Company Put Restriction”) (provided that a credit or other debt agreement shall not be considered to create
a Company Put Restriction if the payment of the Cash Consideration can be effected by application of any provision, election or
“basket” available under the agreement, in which case the Company shall be required to cause the Special Purchaser
to effect the purchase of the LCC Put Shares to the extent permitted under such agreement), then the Company shall notify Loral,
PSP and the Participant in writing (a “Company Restriction Notice”) and shall not be obligated to cause the
Special Purchaser to purchase the LCC Put Shares to the extent prohibited by the Company Put Restriction. The Company shall use
commercially reasonable efforts to overcome (or obtain a waiver of) any Company Put Restriction and shall send a subsequent written
notice (the “Company Restriction Elimination Notice”) to Loral and PSP and, unless a Loral Call or Shareholder
Backstop with respect to all of the LCC Put Shares shall have previously closed, the Participant, promptly after the Company determines
that the Company Put Restriction no longer applies. In such event, Participant shall once again have the right, within seven (7)
days from the date of the Company Restriction Elimination Notice to exercise the LCC Put Right by delivering a new LCC Put Notice
for the LCC Put Shares, less the Shares, if any, acquired by Loral pursuant to the Loral Call, in which event the LCC Put Right
shall be effected subject to and in accordance with the provisions of this Section 15 (provided that if the Implicit Loral Purchase
Price per Telesat Share has already been determined in response to Participant’s original LCC Put Notice and there has not
been a subsequent Material Change, such determination shall remain valid and the Implicit Loral Purchase Price per Telesat Share
will not be determined again in response to any subsequent LCC Put Notice given pursuant to this sentence). In the event of a Company
Put Restriction or a default by the Special Purchaser in purchasing the LCC Put Shares upon exercise of the LCC Put Right, then
Loral shall purchase all of the LCC Put Shares; provided, however, that PSP shall have the right, but not the obligation, exercisable
upon written notice to Loral and the Participant not more than five (5) days after PSP’s receipt of the Company Restriction
Notice, to purchase a percentage of the LCC Put Shares determined by dividing the number of Equity Shares owned by PSP immediately
prior to the Loral Only Change of Control by the total number of Equity Shares owned collectively by Loral and PSP at such time,
in which case upon any such exercise by PSP the number of LCC Put Shares to be purchased by Loral shall be reduced accordingly
(any such purchase of LCC Put Shares by Loral and/or PSP, a “Shareholder Backstop”). The consideration paid
to the Participant by Loral upon a Shareholder Backstop shall at the election of Loral, be either (i) Cash Consideration or
(ii) if in connection with the Loral Only Change of Control the holders of Loral Common Stock receive consideration for their
shares in a form other than solely cash (“Non-Cash/Mixed Consideration”), the Non-Cash/Mixed Consideration (to
the extent the Non-Cash/Mixed Consideration consists of more than one type of consideration (e.g. cash and notes), the consideration
paid to the Participant shall be the same types of consideration in the same proportion as received by the holders of Loral Common
Stock); provided that Loral may, at its option, deliver cash to the Participant in place of some or all of the Non-Cash/Mixed Consideration.
The consideration paid to the Participant by PSP in the event that it elects to participate in a Shareholder Backstop shall be
in the form of cash. Notwithstanding anything to the contrary contained in this Section 15(e), the obligation of Loral to
effect a Shareholder Backstop, and PSP’s right to effect a Shareholder Backstop, shall cease in the event that, subject to
the prior written consent of Loral and PSP, the Participant enters into a separate agreement or arrangement with the purchaser
under a Loral Only Change of Control or the Company regarding the treatment of the LCC Put Shares owned by the Participant and
issued upon exercise of the Award in connection with any such Loral Only Change of Control.


 




    	 	-10-	 



     


    

 


(f)          Exercise
of the Loral Call. Loral shall have the right to purchase from the Participant some or all of that number of Shares equal to
the product of the Total Shares and the Loral Ownership Percent upon either (i) a Loral Only Change of Control, and whether or
not Participant exercises his LLC Put Right pursuant to this Section 15, or (ii) a Qualifying Tag-Along Sale in which the Participant
does not exercise his tag-along rights pursuant to Section 12 in full (the “Loral Call”). The Loral Call is
exercisable: (i) in the case of a Loral Only Change of Control, by written notice delivered to the Participant and PSP not
more than seven (7) days after the last day by which the Participant may exercise the LCC Put under Section 15(d) or (e) above
or the Loral Restriction Elimination Call under Section 15(h), and (ii) in the case of a Qualifying Tag-Along Sale, by written
notice delivered to the Participant and PSP not more than seven (7) days after the last day by which the Participant may exercise
his tag along rights with respect to the Qualifying Tag-Along Sale (the last day on which the written notice may be delivered being,
the “Call Notice Deadline”). Loral may at its election, assign some or all of the Loral Call to the Company.
In the event that Loral exercises a Loral Call, PSP shall have the right, exercisable at PSP’s written election delivered
to Loral and the Participant not more than five (5) days after PSP’s receipt of Loral’s notice pursuant to the immediately
preceding sentence, to purchase from the Participant a percentage of the Shares that are subject to the Loral Call determined by
dividing the number of Equity Shares owned by PSP immediately prior to the Loral Only Change of Control or Qualifying Tag-Along
Sale (as the case may be) pursuant to which the Loral Call shall have been exercised by the total number of Equity Shares owned
collectively by Loral and PSP at such time, which Shares shall be purchased by PSP upon the same terms and conditions as the Loral
Call, except that the consideration paid by PSP for such Shares shall be in cash. To the extent that a Loral Call closes, the Company
shall be discharged from satisfying the LCC Put Right in respect of the Shares subject to the Loral Call.


 




    	 	-11-	 



     


    

 


(g)          Closing
of the Loral Call. Upon closing of the Loral Call, Loral shall exchange (x) Exchange Consideration (as defined below) equal
to the Implicit Loral Purchase Price Per Telesat Share multiplied by the number of Shares subject to the Loral Call, for (y) the
number of Shares subject to the Loral Call. The “Exchange Consideration” shall, at the election of Loral, be
either (i) Cash Consideration or (ii) if in connection with the Loral Only Change of Control the holders of Loral Common Stock
received Non-Cash/Mixed Consideration, the Non-Cash/Mixed Consideration (to the extent the Non-Cash/Mixed Consideration consists
of more than one type of consideration (e.g. cash and notes), the consideration paid to the Participant shall be the same types
of consideration in the same proportion as received by the holders of Loral Common Stock); provided that Loral may, at its option,
deliver cash to the Participant in place of some or all of the Non-Cash/Mixed Consideration.


 


(h)          Loral
Call Restriction. Should Loral be prohibited by applicable law or prohibited under any agreement (including any credit or other
debt agreement) applicable to Loral from paying the Exchange Consideration or acquiring the LCC Put Shares (a “Loral Call
Restriction”) (provided that a credit or other debt agreement shall not be considered to create a Loral Call Restriction
if the payment of the Exchange Consideration can be effected by application of any provision, election or “basket”
available under the agreement, in which case Loral shall be required to effect the exchange of the LCC Put Shares to the extent
permitted under such agreement), then Loral shall notify Participant in writing (a “Loral Restriction Notice”)
and Loral shall not be obligated to exchange the number of Shares subject to the Loral Call or the Shareholder Backstop to the
extent prohibited by the Loral Call Restriction. Until such time, if any, as the LCC Put Right is closed, Loral shall use commercially
reasonable efforts to overcome (or obtain a waiver of) any Loral Call Restriction and shall send a subsequent written notice (the
“Loral Restriction Elimination Notice”) to the Participant, promptly after Loral determines that the Loral Call
Restriction no longer applies. In the case of a Shareholder Backstop, Participant shall then have the right, within seven (7) days
from the date of the Loral Restriction Elimination Notice to require Loral to purchase its pro rata share of the LCC Put Shares
by delivering a written notice therefor to Loral (the “Loral Restriction Elimination Call”). Upon receipt of
any such notice, Loral shall close the Loral Call or its portion of the Shareholder Backstop, as applicable, subject to and in
accordance with the provisions of this Section 15 (provided that if Implicit Loral Purchase Price per Telesat Share has already
been determined in response to Participant’s original LCC Put Notice and there has not been a subsequent Material Change,
such determination shall remain valid and the Implicit Loral Purchase Price per Telesat Share will not be determined again).


 


(i)          Closing.
The closing of the purchase of the LCC Put Shares, Shareholder Backstop or the Loral Call, as applicable, shall occur as close
to contemporaneously with the Loral Only Change of Control as is reasonably practicable. In the case of the Loral Call, Participant
shall be deemed to have appointed Loral as his true and lawful attorney in fact to take all such actions and to sign all such documents
as are necessary or, in the reasonable view of Loral, desirable in order to effect the closing of the Loral Call, in which case,
Loral shall hold the purchase price for such Shares in trust for the Participant, pending acknowledgement in writing of the exchange
by the Participant.


 




    	 	-12-	 



     


    

 


(j)          Reservation
of Rights; Confidentiality. Participant acknowledges and agrees that neither the provision of the Loral Notification nor any
communications related thereto between Loral and Participant, nor Participant’s delivery of an Exchange Notice in response
to the Loral Notification, may affect the right of Loral or the holders of its Common Stock to subsequently determine not to pursue
or enter into any agreement or arrangement relating to a Loral Only Change of Control on any terms, or to change the Loral Only
Change of Control Consideration. Participant further agrees that Participant (i) will keep the Loral Notification and the matters
stated therein or related thereto strictly confidential and not disclose them to any third party, and (ii) upon request from Loral,
enter into a customary confidentiality agreement with Loral relating to any information provided in the Loral Notification or otherwise
provided by Loral that is related thereto.


 


16.           Special
Exercise and Repurchase. In the event that the Participant’s employment terminates, other than for Cause or voluntarily
without Good Reason, at a time when the Company’s common equity securities are not publicly-traded, if the Participant notifies
the Company and Loral of his intent to exercise the Tandem SAR at a specific date fifteen (15) to thirty (30) business days after
such notice of intent to exercise (with such exercise date being while the Tandem SAR is still exercisable) and the estimated amount
of Canadian and United States taxes (with an estimated calculation) that would be due upon such exercise is greater than the Minimum
Withholding Amount, the Committee shall promptly notify the Participant of its calculation of the Fair Market Value of the underlying
Shares and the number of Shares (the “Gap Shares”) that would be necessary to be purchased by the Company or
its Affiliate to enable a Participant to pay additional taxes due in addition to the Minimum Withholding Amount, assuming the date
of the giving of the notice was the exercise date (the amount of additional taxes being the “Gap Taxes” and
the additional Options that would be need to be exercised to obtain the Gap Shares being the “Gap Taxes Options”).
The exercise period on the Gap Taxes Options shall be automatically extended until the earliest of (w) the end of the exercise
period for the Option without regard to the termination of employment, (x) sixty (60) days after Special Purchaser or Loral notifies
the Participant that it will purchase the underlying Shares of the Gap Taxes Option from the Participant on the date that is six
(6) months and one (1) day after the exercise of the Tandem SAR with regard to the Gap Taxes Option (and provides a Confirmation
(as defined below) (y) nine (9) months after the Company’s common equity securities are publicly-traded, and (z) the Participant’s
commencement of employment with a Competitor; provided that the foregoing extension shall not apply if, upon receipt of the notice
of intent to exercise from the Participant, either (i) the Company confirms in writing (a “Company Confirmation”)
that it will have the ability (without creating a default) under its credit agreement (or other debt agreements) to have the Gap
Shares purchased (and the subsequent steps taken) through the Special Purchase Right (as described below in Section 17(b)) six
(6) months and one (1) day after the date of the exercise or (ii) if it is then a shareholder of the Company, Loral confirms in
writing (a “Loral Confirmation” together with a Company Confirmation, a “Confirmation” )
that, if the Gap Shares cannot be timely purchased through the Special Purchase Right (as described below in Section 17(b)), it
will purchase the Gap Shares six (6) months and one (1) day after the exercise without violating Canadian or other applicable laws
regarding its securities ownership of the Company and compliance with other relevant legal requirements or its credit agreements
(or other debt agreements). Any Confirmation shall only be effective if delivered by the Company or Loral to the Participant at
least five (5) days prior to the proposed exercise date. If a Confirmation is so delivered, the Gap Shares shall be purchased six
(6) months and one (1) day after the exercise pursuant to the Special Purchase Right (as described below in Section 17(b)) or by
Loral, as the case may be; provided that the Special Purchaser shall not be required to effect such purchase if, as a result of
a change in circumstances beyond the reasonable control of the Company, the Special Purchaser is prohibited from making such purchase
(or subsequent steps specified in Section 17(b) hereof) by applicable law or such purchase (or subsequent steps) would create a
default under a credit agreement (or other debt agreements) of the Special Purchaser or the Company (and Loral shall instead make
such purchase, unless Loral is similarly prohibited or would have such a default and was also prohibited or would have had such
a default at the time the Confirmation was delivered). If neither Loral nor the Special Purchaser completes the purchase of the
GAP Shares as a result of such a prohibition, then the Special Purchaser shall be required to repurchase the GAP Shares as provided
above as soon as such restrictions have lapsed (and the Special Purchaser shall provide written notice to the Participant promptly
upon such lapse).


 




    	 	-13-	 



     


    

 


17.           Restriction
on Call Rights and Purchase.


 


(a)          Notwithstanding
Section 5.9.3 of the Plan, the call rights of the Company as set out in Section 5.9.3 of the Plan generally shall not apply if
the Participant is terminated by the Company without Cause or the Participant’s Employment is terminated by the Participant
for Good Reason; provided, that (a) such call rights shall fully apply to Shares that have become issuable upon the exercise of
the portion of the Award which has vested and become exercisable solely as a consequence of such termination of employment (on
the terms specified in Section 5.9.3 of the Plan) and (b) such call rights may be exercised in respect of any Shares held by the
Participant during the six-month and one day period commencing on the later of: (i) the date the Board, acting in good faith, becomes
aware that the Participant has become employed by, or is otherwise providing services to, a Competitor (as defined in Schedule
B hereto) with the date of such determination by the Board being treated under Section 5.9.3 of the Plan as if it was the
date of termination of employment (in such case, the call right may be exercised at the Fair Market Value of the Shares on the
date of exercise) or (ii) the exercise date of the Award. Notwithstanding Section 5.9.3 of the Plan, in the event that the Participant’s
employment terminates, other than for Cause or voluntarily without Good Reason, the Company may not satisfy the purchase price
under the call rights by issuing a promissory note to Participant. Notwithstanding anything to the contrary in the Plan, any reference
to “Grant Date” in Section 5.9.3 of the Plan shall be deemed to refer to “September 17, 2013.” In the event
the Participant voluntarily terminates employment between September 18, 2015 and September 17, 2016, and if Daniel Goldberg
ceased to be employed by the Company for any reason within six (6) months prior to such termination, the provisions of Section
5.9.3 of the Plan shall apply as if the termination was prior to September 18, 2015. Upon exercise of the Company of its call right,
such call right shall immediately be deemed to have been assigned to, and exercised by, the Special Purchaser (as described in
Section 17(b)).


 




    	 	-14-	 



     


    

 


(b)          In
the event that (i) the Gap Tax Shares are purchased by the Special Purchaser, or (ii) the Committee delivers to the Participant
a notice that the Company is subject to an Applicable Restriction, but the Company gives the Participant written confirmation that
the purchase by the Special Purchaser of the Shares represented by the Tandem SAR is permitted, and does not create a default under
its or the Company’s credit agreement (or other debt agreements), or (iii) the call right of the Company is available pursuant
to Section 17(a) and the Company exercises such right pursuant to Section 5.9.3 of the Plan, or (iv) Shares are to be purchased
pursuant to Section 15(d), the Special Purchaser shall purchase from the Participant all Shares issuable upon exercise of the Gap
Tax Option, or all of the Shares represented by that portion of the Tandem SAR which cannot be exercised pursuant to Section 3(b),
or all Shares in respect of which such call rights have been exercised pursuant to Section 5.9.3 of the Plan, or all of the Shares
to be purchased as provided in Section 15(d), as the case may be, on the date set out for such purchase in Section 16, or as provided
in Section 3(b), or as provided in Section 5.9.3 of the Plan, or as provided in Section 15(d), as the case may be, and for the
purchase price therein provided. On such date, the Shares shall be purchased by the Special Purchaser, and shall thereafter be
transferred, along with the obligation of the Special Purchaser to pay for the Shares, to a subsidiary of the Special Purchaser,
which shall be wound up into the Company. The Company agrees to the acquisition of such subsidiary by the Company from the Special
Purchaser for nominal consideration and to the winding up of such subsidiary into the Company. The purchase price for the Shares
shall be paid by the Company within ten (10) business days after completion of the winding-up of such subsidiary into the Company,
which shall occur promptly after exercising the call right.


 


18.           Fair
Market Value.


 


(a)          For
purposes of this Agreement, “Fair Market Value” means (a) with respect to Equity Shares, Fair Market Value
as defined in the Plan, and for any purposes, including for any call and for purposes of Section 3, Section 12 and Section 15,
shall be determined without any discount for minority interest or illiquidity, (b) with respect to any other asset means the amount
for which a willing buyer and willing seller would purchase and sell the asset in an efficient market, and (c) with respect to
any liability means the amount which a willing creditor would accept to discharge such liability and which a willing debtor would
pay to discharge such liability in an efficient market.


 


(b)          The
“Loral Stake FMV” means: (i) the Fair Market Value of the total consideration that is to be paid to the holders
of Loral equity in the Loral Transaction, plus (ii) the Fair Market Value immediately prior to closing on the date of the
closing of a Loral Transaction of any indebtedness of Loral incurred to fund cash distributions to the holders of Loral equity,
less (iii) the amount, if any, by which the Fair Market Value of Loral’s assets (excluding the Equity Shares) exceeds
the Fair Market Value of Loral’s liabilities (other than liabilities included in clause (ii) above). Loral shall cooperate
with the Board in its determination of Fair Market Value for purposes of Sections 12, 15 and 18.


 


(c)          If
the Participant or Loral (with respect to Fair Market Determinations for the purposes of Section 12, 15 and/or 18) does not agree
with the Fair Market Value as determined by the Board pursuant to the Plan and this Section 18, the Participant or Loral,
as the case may be (the “Objector”) shall notify the Board in writing of such objection within fifteen (15)
days of receipt of written notice of such Fair Market Value, and shall provide to the Board his own determination of Fair Market
Value in writing no later than thirty (30) days of such receipt. The Board shall submit the determinations of Fair Market Value
to an investment banker or valuation service agreed upon in good faith by the Board, Loral and the Participant (an “Appraiser”)
to choose one of the determinations as the most appropriate valuation of the Fair Market Value of the Shares. All fees of the Appraiser
shall be paid (a) by the Company if the Appraiser chooses an Objector’s determination of Fair Market Value, and (b) by the
Objector if the Appraiser chooses the Board’s determination of Fair Market Value. For the avoidance of doubt, the provisions
of this paragraph (c) shall also apply to the determination of the Loral Stake FMV.


 




    	 	-15-	 



     


    

 


19.           Dividends.
In the event that the Company pays a dividend to the holders of its Equity Shares, the Board will provide for the crediting of
a notional account established on the books and records of the Company (the “Notional Account”) for the Participant
(but such Notional Account shall not be established and the Participant shall have no rights hereunder to the extent it would not
be permitted under Section 409A of the Code) an amount equal to (a) the per-share dividend payable to holders of its Equity Shares
multiplied by (b) the number of Shares subject to the Award on the payment date; provided, that, notwithstanding the foregoing,
the Participant may elect, upon notice of an impending dividend, and in lieu of some or all of the amount credited to the Notional
Account, to have the Board adjust in its good faith determination the (i) Exercise Price with respect to the Option, (ii) the SAR
Base Price with respect to the Tandem SAR, and/or (iii) the number of Shares subject to the Award, or to have the Board otherwise
substitute such Award, in any case so as to prevent dilution or enlargement of rights, and provided that such adjustment or substitution,
and any election to adjust or substitute, is done in accordance with and only to the extent permitted by the provisions of (1)
Sections 409A and 424 of the Code, to the extent the Participant is subject to taxation in the U.S., and/or (2) Sections 7(1.4)
or proposed Sections 110(1.7) and (1.8), to the extent such Sections become effective and apply to any such adjustment or substitution,
of the Income Tax Act (Canada), to the extent the Participant is subject to taxation in Canada. Amounts credited to the Participant’s
Notional Account will be distributed at the time of vesting of the Award. On the date and to the extent a portion of the Award
is forfeited, a Participant will forfeit any amounts remaining in his Notional Account and which are attributable to such forfeited
portion of the Award.


 


20.           Share
Repurchasing. In the event the Company repurchases or offers to repurchase its Shares from both Loral or PSP or their respective
Affiliates, or their respective permitted transferees, on a substantially pro rata basis, the Company shall also offer to
repurchase Shares from Participant on the same basis to the extent such offer is legally permitted. Such pro rata portion
shall be based on all Shares issued to Participant and all Awards outstanding that were granted to Participant, whether vested
or unvested. Participant shall accept such offer within ten (10) business days of its being made or shall be deemed to have rejected
such offer and, if accepted, the sale and purchase shall close at the same time as the closing of the stock purchase from Loral
and PSP or their respective Affiliates. To the extent necessary to permit the sale, additional Awards shall vest in order of the
next vesting tranches.


 


21.           Taxes
and Withholding. No later than the date of exercise of the Award granted hereunder, the Participant shall pay to the Company
or make arrangements satisfactory to the Board regarding payment of any Canadian federal, provincial, and local taxes, and any
U.S. taxes applicable to the Participant, of any kind required by law to be withheld upon the exercise of such Award. In the event
the Participant exercises the Tandem SAR, then the Participant shall satisfy the Minimum Withholding Amount due upon exercise of
the Tandem SAR by having the Company remit to the appropriate taxing authority the cash to which the Participant is entitled upon
exercise of the Tandem SAR pursuant to Section 3 above. Notwithstanding the foregoing, the Company shall, to the extent permitted
or required by law, have the right to deduct from any payment of any kind otherwise due to the Participant any Canadian federal,
provincial, and local taxes and any applicable U.S. taxes of any kind required by law to be withheld upon the exercise of such
Award.


 




    	 	-16-	 



     


    

 


22.           Integration.
This Grant Agreement, and the other documents referred to herein or delivered pursuant hereto which form a part hereof, including
the Employment Agreement, contain the entire understanding of the parties with respect to its subject matter. There are no restrictions,
agreements, promises, representations, warranties, covenants or undertakings with respect to the subject matter hereof other than
those expressly set forth in this Grant Agreement, in the Employment Agreement and in the Plan. This Grant Agreement, the Employment
Agreement and the Plan, supersede all prior agreements and understandings between the parties with respect to its subject matter.


 


23.           Counterparts.
This Grant Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall
constitute one and the same instrument.


 


24.           Governing
Law. This Grant Agreement shall be governed by and construed and enforced in accordance with the laws of the Province of Ontario,
Canada without regard to the provisions governing conflict of laws.


 


25.           Participant
Acknowledgment. The Participant hereby acknowledges receipt of a copy of the Plan, including the Accession Agreement attached
thereto as Exhibit A. The Participant hereby acknowledges that all reasonable decisions, determinations and interpretations of
the Board in respect of the Plan, this Grant Agreement and the Award shall be final and conclusive. The Participant further acknowledges
that, prior to the existence of a Public Market, no exercise of the Award or any portion thereof shall be effective unless and
until the Participant has executed an Accession Agreement and the Participant hereby agrees to be bound thereby. The Participant
acknowledges that, among other provisions, the Plan contains a “call-right” and agrees that such “call-right”
may be exercised by the Company or its designee (with the Company having the right to enforce the right of the designee).


 


26.           Limitation
on Liability. The Participant acknowledges that only the Special Purchaser, its subsidiary to which the Share and the obligations
to pay for the Shares are transferred and the Company shall be liable or responsible to the Participant in respect of the purchase
of the Shares under the provisions of this Agreement related to actions of the Company, the Special Purchaser and its subsidiary,
and no direct or indirect shareholder of the Special Purchaser or any director or officer of the Special Purchaser or such subsidiary
shall be liable with respect thereof (except as expressly provided hereunder).


 




    	 	-17-	 



     


    

 


IN WITNESS WHEREOF, the
Company, Participant, Loral, and PSP have each caused this Grant Agreement to be duly executed by its duly authorized officer and
said Participant has hereunto signed this Grant Agreement on his own behalf, thereby representing that he has carefully read and
understands this Grant Agreement, the Plan and the Accession Agreement.


 


	 	Telesat Canada
	 	 	 
	Date: August 25, 2017	By:	/s/ Chris DiFrancesco
	 	 	 
	 	Loral Space & Communications Inc.
	 	 	 
	Date: December 15, 2017	By:	/s/ Avi Katz
	 	 	 
	 	Public Sector Pension Investment Board
	 	 	 
	Date: December 5, 2017	By:	/s/ Guthrie Stewart
	 	 	Senior Vice President, Global Head of Private Investments
	 	 	 
	 	 	/s/ David Morin
	 	 	Director, Private Equity
	 	 	 
	 	4440480 Canada Inc.
	 	 	 
	Date: December 15, 2017	By:	/s/ Avi Katz
	 	 	 
	Date: August 31, 2017	 	/s/ Michel Cayouette
	 	 	Michel Cayouette 


 




     


     


    

 


SCHEDULE A


 


VESTING


 


	VESTING DATE	 	# OF SHARES	 
	 	 	 	 
	September 17, 2017	 	 	72,000	 
	 	 	 	 	 
	September 17, 2018	 	 	60,516	 
	 	 	 	 	 
	September 17, 2019	 	 	26,400	 
	 	 	 	 	 
	September 17, 2020	 	 	26,400	 
	 	 	 	 	 
	September 17, 2021	 	 	26,400	 






 






     


     


    

 


SCHEDULE B


 


TO THE GRANT AGREEMENT


 


The Participant may not
transfer any Shares or other securities received upon the exercise of the Award, or Shares resulting from the conversion of the
Shares into other Equity Shares, or any interest therein, (in this Schedule B, “Shares”) to any person except
as permitted herein:


 


		(i)	The Participant may transfer Shares to a Permitted Transferee as defined in Section 5.5 of the
Plan (with the prior consent of the Board, which consent may be withheld in the Board’s sole discretion), or to a Canadian
immigration trust, subject to compliance with the conditions precedent set out in Section 5.6 of the Plan, modified as need be
to contemplate a transfer of Shares, instead of a transfer of an Award;



 


		(ii)	Prior to the completion by the Company of an Initial Public Offering for Equity Shares of the Company,
there shall be no transfer of Shares except as provided in (i) above, or as otherwise expressly provided in the Grant Agreement.



 


		(iii)	After the completion of an Initial Public Offering for Equity Shares of the Company, the Participant
shall be entitled to sell without restriction the Selldown Percentage of Shares acquired by the Participant upon exercise of the
Award (and Shares subject to the Award which have vested). The “Selldown Percentage” shall equal (a) the percentage
of all Equity Shares as shall have been sold by PSP or Loral (and their Permitted Transferees as defined in the Accession Agreement)
in the Initial Public Offering or after the Initial Public Offering (other than sales to PSP, Loral or a Permitted Transferee as
defined in the Accession Agreement) relative to the number of Equity Shares held by PSP and Loral immediately prior to the Initial
Public Offering or (b) 100% if PSP, Loral and their Permitted Transferees (as defined in the Accession Agreement) cease to
hold at least 70% of all Equity Shares following the Initial Public Offering.



 


		(iv)	The Participant shall be entitled to participate in any public offering of Common Shares of the
Company including an initial public offering in the manner provided in Sections 6.03 and 6.04 of the Unanimous Shareholders Agreement,
but with the status only of “Included Holder” as defined in Section 6.03, provided that in no event shall the number
of shares subject to such participation exceed the Selldown Percentage.



 


		(v)	References on this Schedule to PSP or Loral shall also include their respective subsidiaries owning
Equity Shares.



 






    	 	-2-	 



     


    

 


		(vi)	Definitions:



 


“Competitor” is any
corporation, firm, partnership, proprietorship or other entity which engages in the Satellite Business (as defined below) in any
of the same countries, states, provinces or other political subdivisions of countries in which the Company or its Subsidiaries
are engaged in the Satellite Business as of the date of Participant’s termination of employment and is a material competitor
of the Company (or its Subsidiaries) in such countries, states, provinces or other political subdivisions of countries with respect
to a material amount of Satellite Business of the Company and its Subsidiaries (what is material being determined based on the
5-year business plan in effect for the Company and its Subsidiaries as of the date of Participant’s termination of employment).


 


“Satellite Business”
shall mean the business of communication of electronic video, data, voice or other information by transmission by satellite operating
in the Fixed Satellite Service frequencies for hire in any of the geographic areas in which the Company or its Subsidiaries operate
such Fixed Satellite Service frequencies as of the date of Participant’s termination of employment.


 



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